Ok, editing this post to hopefully get some help.
I've been working with this character for a week or two. Today I was adding bones and playing with smart bones to see how he would move, then erasing the bones and making corrections to the vectors in their respective layers. But it seems something has gone screwy. Now when I try to add bones and then offset them, I can't get some of the bones to influence their layers and also some layers are parented even when no bones are added. It's like the layers are binded to bones I have erased.
update: While waiting for some help, I've tried creating a new project, then I imported old project into new one. I then recreated all layers by copying vectors and pasting these into new layers. Then deleting old layers. So theoretically, there should be no information stored about paths or bones, etc. Unfortunately, this is not the case.
Here are a few photos:

in the above picture, I have just added a bone to the body and 2 to the arm layer and 1 to the hand.

now I select the offset tool and try moving the "shirt" bone. But not only does that bone move but the head layer, the pelvis layer and the neck layer. Even though I haven't even created bones for them yet in this project. Also the arm and hand bones move but do not influence their respective layers! (I have drawn arrows to show movement.)
I am hoping I am doing something wrong. Otherwise My only option now is to recreate each layer. Ok, so a few hours wasted.... but this is the sort of thing that leaves me very discouraged by this program. I would also gladly send this project file to anyone willing to help. Thank you in advance!
I am using ASP 9.1 and am on OS lion 10.7.5
and here is a youtube video showing problem too!
http://youtu.be/AHx4U1EdwoI