Create head in Facegen
Save the .fg (facegen file) incase you would like to make additional morphs later
Export as "head" (with out the quotes and must be lower case)
Either Current Expression or Neutral Expression and Animation Targets (if you would like to add these morphs to your head)
Also create morphs of (you will have to find phoneme pose shapes or look in the mirror to see how the shape of the mouth is)

OpenLips
Mouth O
Mouth F
Mouth M
Tongue T
Tongue L

RBrowUp
LBrowUp
Blink Right
Blink Left

and save these exactly as they are named OpenLips, Mouth O, etc

I am using Aiko 3 to do this so my specs are set to her
Import figure (Aiko3)
Uncheck left and right leg in Inverse Kinematics then in the Joint Editor (make sure figure 1 and Body are selected) Zero Figure, then make sure figure is dropped to floor. From this point on DO NOT MOVE THE AIKO FIGURE

On Camera Controls go to the Face Camera, and back the figure out a little, so you can have some working room (turning the figure left and right, when adjusting the head).
Import the Facegen head (prop) at (my settings for this are: Everything unchecked except Perctage at 14% the Offset (X,Y,Z): Y axis is 0.627, x and z stay at 0.000). Rotate the head Xrotate 21 degrees (This should be a good position for the new head on Aiko 3s body).
If you want it in a different position, you will have to delete the head prop and re-import it with different settings as ALL THE MORPHS YOU IMPORT (OpenLips, Mouth O etc.) WILL HAVE TO BE AT THE SETTINGS YOU IMPORTED THE MAIN HEAD PROP IN.
(So remember the settings you imported the main Facegen head with)

FROM THIS POINT ON DO NOT MOVE THE NEW HEAD YOU ARE MAKING

Export Facegen head,
     Export Range: Single Frame
     Select objects: Only select the Facegen head Prop
     Export Options: Check Weld body part seams and
                     Include body part names in polygon groups
       everything else should be unchecked
     save in a new folder as "head" without the quotes
Delete Facegen head from poser window leaving only original figure (my case Aiko).

then reimport head (import settings:make sure the Percent of standard figure size is 100.0 and the offset (x,y,z) are all at 0.000 then uncheck everything.
Open Windows/Hierarchy editor select the head prop and the create new figure, name the new figure "head", without the quotes. A new figure will be created in your Poser figure library under New Figures
Delete the head prop from the poser window and import the new figure head you just created
select the Aiko3 figure or what ever figure you are using and hide the head and both eyes.

Use Magnets to fix the neck area, when the neck area looks good go to Object in the menu bar and Spawn Morph Target, save as "neck" with out the quotes. Should be a new morph on your head figure called neck
save the magnets to the props library. Delete the magnets.

Delete the Aiko figure or what ever figure you are using then Save the new head figure to your figure library and Save AS a pz3 file called head (you don't have to do both, I do just so I will have a back up)(I will be using the pz3 file)
export obj the head only
     Export Range: Single Frame
     Select objects: Only select the head
     Export Options: Only check As Morph Target (no world transformations)
     Save as head

create a new scene and Import figure (Aiko3)
Uncheck left and right leg in Inverse Kinematics then in the Joint Editor (make sure figure 1 and Body are selected) Zero Figure, then make sure figure is dropped to floor.

Use the Face Camera it is much easier to see what is going on

Import head prop you saved to the new folder (import settings:make sure the Percent of standard figure size is 100.0 and the offset (x,y,z) are all at 0.000 then uncheck everything).
make sure you have the figure (Aiko) and head selected and replace Body Part With Prop with the head prop you just imported
Hide the original eyes
Save figure as a pz3 file under whatever name you want

If you have MorphManager call up the new pz3 you just made and delete all the original morphs from the head (left over from the original head, because they wont work and are just taking up space)

Open the pz3 file of head figure you saved

Do this section for each morph you have

Import (do not load morph target from head properties) morph target (wavefront .obj).
Everything unchecked except Percentage at 14% the Offset (X,Y,Z): Y axis is 0.627, x and z stay at 0.000). Rotate the head Xrotate 21 degrees Keep the neck morph set at 1
make sure you have the figure and head selected then replace Body Part With Prop the morph prop you just imported
export obj the head only
     Export Range: Single Frame
     Select objects: Only select the head
     Export Options: Only check As Morph Target (no world transformations)
     Save as OpenLips, Mouth O or what ever morph you are working on

Use this same section if you have made additional morphs in Facegen and would like to add then to the morphs you have already created

After you have the morphs created close out of this head figure you are working on DO NOT SAVE IT you don't want to overwrite it

Open the pz3 of the full body and head figure you created and got to the head and choose properties and then Load morph targets

If you are going to use Mimic I just use the default.dmc and the Default.cr2

I hope this works for you because it does work for me
I don't think I missed anything in making this how to
Good Luck
If you find an easier way please let me know

Steve