Yeah, I giggled when I saw the error, but then I was surprised that it wasnt acted on.
When you export your object, it will likely not be centered around the object pivot point. To help make sure it will look fine, put their pivots at exactly (0, 0, 0). I assume that it's at the bottom between the feet, just as it should be.
This happened to me before. I'd have one model to look at and one to work on.>nope.avi
They must overlap as perfectly as possible in the xNormal viewer, which I see you know how to open.
TLDR: Low poly and high poly must overlap at the time of export, because they also must overlap in xNormal at the time of baking.