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In Dungeon Siege the Y is up. When you start flagging faces in the SiegeMax and export the node, it will define a bunch of bounding boxes for each group that you define. So what you can do is read the size of that bounding box and then use that to limit where you place the object. You can even go as far to make sure it doesn't intersect the non-walkable and water faces as well, if you wanted.