They are split right at the groupings in every area.  So what did I do wrong?

On the left side, You probably don't have a row of polygons belonging to HIP between abdomen and thighs. If you skip a group in a hierarchy, the polygons don't stay connected to one another when bending.  I learned that the hard way too!

On the right, at his groing, probably the same thing, perhaps a few polygons are not in the right group.  Make sure you have 'bend' turned on in properties. That's happened before too, I'd be looking for advanced problems, and miss something really simple.

Are the polys at those points actually welded?  Can you show a wireframe view of, uh, that region close up?

jjroland,

As others have said check your welds and your groupings.
You may need to check your joint perameters spherical falloff zones as well, that's "another" fun thing for you to learn.

Hope this helps.

""Are the polys at those points actually welded?  Can you show a wireframe view of, uh, that region close up?""

I think it is either this or what Connie suggested for sure.  Not sure if I can explain this right but before whenever I would group parts in Carrara and then go into Hex with them all of the parts would become un-welded.  That was actually one of my biggest frustrations.  When I exported this figure from Poser and took it back into hex as an object - sure enough it had 3 seperate parts.

I welded all and brought it back in.  So now today I'll see if when I add bones back it does the same thing.  Adding Apollos bones also renamed my boxers "Apollo".  I'll get to that later though.

Could also be what Connie said because there are no groin or ab groups in there.  Just Hip, rThigh and lThigh.

Thanks for the suggestions.  
I'll stick to this thread for updates now, last night I was tired and couldn't find the old one.

Ok I have done this about 15 times today and my results are the same every single time.  I have no clue what else to do.  Lets do a step by step:

After checking 100x in modeling program to verify that every single edge is connected and welded - vertice and poly too...
I import boxers.obj in poser.  
I verify that boxers fit model in zero position.
I take boxers into setup room.
I load apollo bones.
I delete 3500 bones (ok not that many but after 15 tries it feels like it), leaving pelvis, hip, lthigh, rthigh, left shin, right shin and gen 1.
I go to group (still in set up room).  I click autogroup.  
It gives me groups for gen1, hip, lthigh, rthigh.  I adjust them.  
Now I've tried clicking weld groups and not clicking weld groups.  (even tried different tolerances)
Go back to pose room after making sure no pop up warning about unassigned polys.
I save to library.
Load apollo - reload boxers - conform to apollo:

Every single time without fail the boxers have had splits along every single group.

I'm pulling my hair out here - it is beyond frustrating to follow every single step to the T and still have this happen.

Any more clues?

One thing I noticed. (This stuff is hard to describe...) When you make a figure, it's important that the separate "branches" extending out from one part aren't connected to each other at the base. For example, the edges at the base of the index and middle finger would need to be separated by a loop of the hand part or they would come apart in Poser. Sometimes even wielded parts come apart until you adjust the falloff zones. In any case, Setup is suppose to “wield” for you, even if the parts are not wielded when you import. If you use Lightwave you actually have to cut a model into its separate parts to get Poser to load your morphs. Are the separations occurring between separate parts or right in the middle of your parts?

between seperate parts.  Right along the edges of the groups.

~edit~  Im going to do it again and save Screen shots.

Can you post an image of your boxer model with each of its parts displayed as a separate color? It would help to determine whether what I think might be the problem actually is, at which point I could tell you how to fix it.

First image: 

My .obj settings on import:

Note the boxers still are all one piece:

Boxers still no rips or tears.

I think the problem is on how the groups interact with one another. For example, if pelvis and thigh polygons are 'touching', they will split instead of bending. They need a row of 'hip' grouped polygons in order to bend instead of splitting.  
It'd dependent on how the bones connect together.
(Check your email, I sent you a sample grouping for the boxers, so you can compare to what you're getting)

Now he is without any rips or tears or seperation along the groups.   This tells me that I have to work to be much neater in the way that I model it though - that is good to know.  I think he could really use a genital group as well to avoid this crazy bulge he's got going on.  I'm still happy.  WIth much help from people here at Renderosity I have managed to go from beginning to end - and now I at least comprehend the process. 

P.S.  Connie where is your public wishlist ?? o.0

No wishlist.. I'm just collecting good karma points... or something like that 
Glad it helped, helps me make sure I know what the heck I'm doing too.