Have anyone ever had the same problem? I have the gizmo stretched so that it's unusable. How it can be fixed? I attach a picture there so you can see the problem. I have never before seen this kind of problem. I just changed to max 2011 from 2010.
First thing I'd try if you havent already would be a reset x-form.
Also what can sometimes be a solution for these wierd things is to select all the faces on the object and shift-drag clone to object. Effectively creating a breand new replica. This should give it a new pivot - hopefully reseting to correct dimensions.