It's weird - but the character's feet are often a few inches above the ground (there's a gap between his feet and his shadow). It could be another part of the 'no gravity' bug seen in SM, or it might be that the ground mesh isn't the same resolution as the world that's being rendered. (or they've got a 'fall through world' bug, so they've set the ground to a fixed plane).
I'm sure it'll get sorted out at some point - just looks weird when you notice it.
Its an Fairly common Bug among Games using an Not Random Generated World.
Theres is different cases for this.
1.
The Mesh and the graphic aint on the same plane. Thus you effectively walking in the Air because the Graphic is Displayed too low.
2.
The Shadowing having a Bug. Thus casting a Shadow onto an Position around the Feet Position and hereby creating the Illusion that the Character stands above the Ground.
3.
The Random addons for the Ground causing the Hitbox for the Feet to go awol. Meaning that some spikes in the meshes cause the Feet to take a higher Position than it actually should because some of the spread around stuff has placed extra meshes somewhat off from their actual Position
It will be fixed for sure. I still remember this happening in Mortal Online after they Converted the Game to a Different Engine xD
You partially had Streets Floating Midair above the Ground while on other places you could walk literally into the Ground
Reason being that the Physical and the Graphical Contact Planes had been Shifted and diverged from each other ^^