ParticleSkin modifier - particle bind vs physX bind

[ldotchopz]

I created a floppy tenticle sim using birth voxels and particle binds, when i add a particle skin the mesh goes all weird.
   

I did the same setup but using physX shapes and binds. the result is similar and the particle skin works perfectly and smoothly.
   

Why does the ParticleSkin modifier read these so differently, and how can i make it look better with the particle bind sim. none of the controls in the modifier seem to help.

Thanks.