Populating Virtual Environments with animated virtual characters often involves retargeting motions to 3D body models with differing shapes. A user’s avatar, for example, should move in a way that is consistent with their model’s body shape in order to maintain the sense of presence. We present a set of perception experiments to explore how motions captured from actors with various body mass indices (BMI) are perceived, when they are retargeted to characters with different BMIs. We also explored the perceptual effects of retargeting average and physics-based motions. To explore the latter, we devised a physics-based controller framework that utilizes motion, target body weight, and height as inputs to generate retargeted motions. Despite the controller generating varied motions for various body shapes, average motions consistently outperformed the controller-generated motions in terms of naturalness. Overall, this work highlights an anthropometric based physics controller and a novel approach for perceptual evaluation of human motion retargeting for virtual characters.