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Heres my First Attempt 
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Going through this section again, I’ve applied only the rotation and scale to all objects, is there a reason we don’t do location?
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Here is my attempt. My little guy looks like he needs more sleep.
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Hi Steve 
,
As Michael mentioned, if you move your model away from center of the world , and you apply the location, your origin of the model will snap back to the worlds’ center, but your model stay where you placed it. That may cause you problems when you try to scale or rotate it, as it will rotate around its origin. When you try to animate your model, or use physics, it will catch you, as the origin is used for physical calculations as well.
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Thanks for the insight, if I understand correctly - editing/moving the model away from its origin and applying will cause this…aside from reassigning the origin back to the center, should I switch to local instead of global to avoid this?
I think global or local won’t have an effect on this. I you moved your origin away from the model through applying its transform, you can use the “Set Origin” in the tool shelf and apply it back to the geometry.
I feel that way too.
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if i watch their eyes, it feels like they got backface-culling 
They do look like the faces, but I don’t think I ever even heard of princess monk. It must be something else.
