Anyway, does anyone know how to do the fatboy effect (like in Unreal)?
I haven't got unreal, but from mirex description I'd guess it displays a normal proportioned model like an overweight model, doesn't it?
I'd guess they just put a scale onto the root joint of the sceleton. If they have soft skinning then this will only apply to the body, and it will be blended out towards the limbs automatically.
Phantasy star online has this effect as well when you create a character.
You could experiment yourself with some modellng software, after you've skinned your mesh try to scale the skeleton.