punching in numbers with orientation is fine, but resizing a model that is more than just geometry, ie, lights and such glued to it, then it no longer works correctly. you get the exact error you have been getting (lights not moving).
try resizing it the way i suggested-click and drag the very corner of that light blue frame that surrounds the selected object. that one resizes everything. (the cursor changes to a 3 axis thing when you are over the right bit IIRC)
the pcs error you are getting will be solved by this unless you have something REALLY detailed and tiny on the model. I'm not exactly sure what pcs checks for, but the error is caused by having the model small enough to put faces very close to each other (TS only goes 3 decimal places small, so the actual distances may be smaller than that in some cases anyway)
enlarge the model in TS and shrink the scaling factor and the polies are further apart, thus allowing pcs to convert it. believe me. i've had this error once or twice before, and a simple enlargement fixed it
