Got him, simple enough error, leaving in obsolete code when converting away from other obsolete code.
Just change the begining of the handle_gravity function as follows
FUNCTION handle_gravity()
{
result = c_trace(vector(my.x,my.y,my.z - my.z_offset),vector(my.x,my.y,my.z - 4000),ignore_me+ignore_passable);
IF (result < 3) {
...etc...Worked fine for me, even though I couldnt get jump to work.
I have only solved the "bounding box" problem you had, I havent checked any deeper than that.
Best of luck.
