Yes, with the value at 0.1 I obtain the same effect as Brian.
I also tried with a smaller value, 0.01, and the result is this (ZB4 under Vista 32 bit):
I hope Nick will be able to regain full control of his creature also under ZB4;)
Ciao
Hmmm… that is interesting. It looks like part of the arms down layer are working and then parts are not. Has anyone else done any testing with earlier versions of ZB files that have layers and then loaded them into the new Z? I would be interested to know if they are seeing any similarities to what is happening with this model.
Thanks for looking into this for me!
Hi Nick,
Just wanted to tell you THANK YOU for the Z-tool.
It’ll be a great study resource. 
Dominiek.
Hi Nick. I made some experiments. First I started in ZB 3.5 r3 with the standard SuperAverage man at Subdiv level 1, and created a layer with the left arm lowered. This is the situation:
Then I started ZB4 and loaded the Ztool, to check if the layer work correctly. Interestingly enough, also in this case, as for your model, ZB4 gave the message "“Updating Additive Shape Layers to a newer format”.
Anyway, this time the shape layer seems working as expected. This is for example the result with a value of 0.5:
So it seems that, in some ways, the problems with your model could be related to the polygroup structure. For some reasons, some of the groups don’t work as the others following the settings of shape layers.
Hope this helps, ciao.
I took a look at this today with my buddy Russell Barton, we found that the problem is happening because this file was created using ZBrush 3.0
If we use ZBrush 3.0 R3 to created the file (polygroups and layers.) then there is no issue, if it is created with 3.0 then the mesh will explode when you load it.
The simple work around is this, take your 3.0 file, load it into ZB 3.5R3 and save it out. Now load that file into ZB 4.0 and everything will work as expected.
Thanks Russell for helping me figure this out!
Peace,
NickZ. 
Hi Nick,
quick and elegant solution, now it works!
I noticed that, while in ZB 3.5 r3 the execution of the shape layer action for the arms is almost immediate, in ZB4 it takes a certain time. But it is not a big problem, thanks again sincerely for your generosity.
Ciao
thankyou very much
Thanks, very cool man! 
Has anyone posted the corrected mesh for V4? I don’t wish to reinstall an older version of Zbrush.
Here is a link to the file that has been loaded in to ZBrush 4.0 and re-saved out.
https://acrobat.com/#d=SsS76*ATKSr-fzPj9BmRsA
I’m not sure if you will need an Adobe Acrobat account or not. Let me know if this is the case.
Peace and Safety to you and your family on this New Years Eve!
After making the last Human Male Athletic model that I provided here on this thread, I used it in a project of mine (Heavy Demon Character)
Through ought this project I discovered some things that I would like to change on the mesh. Here is the updated new mesh and a video that explains some of the changes that have been made.
If you would like to download the model visit one of these links:
Here is a video that describes some of the changes that have been made:
This is such a generous gift! Thank you and Happy New Year!!
wonderfull model , thank you very much
Thanks a ton, Nick.
Thanks so much! We love you Nick!
thank you very much!
Thanks Nick, very generous of you!
Thanks a lot for the updated ZTool Nick. Bless you brother! The demon sculpt looks awesome…especially the bound and chained part…hehe
Thank you very much for another fantastic mesh!
…to you too! 
Natural model indeed!