I made sure that the character controller was formed around his body. I am using the official Unity FPS tutorial Script (CharacterDamage) and it has not been modified. Yes I have unity pro trial.But when i had it in normal it still wouldn't work. The script:

var hitPoints = 100.0;
var deadReplacement : Transform;
var dieSound : AudioClip;

function ApplyDamage (damage : float) {
    // We already have less than 0 hitpoints, maybe we got killed already?
    if (hitPoints <= 0.0)
       return;

    hitPoints -= damage;
    if (hitPoints <= 0.0)
    {
       Detonate();
    }
}

function Detonate () {
    // Destroy ourselves
    Destroy(gameObject);

    // Play a dying audio clip
    if (dieSound)
       AudioSource.PlayClipAtPoint(dieSound, transform.position);

    // Replace ourselves with the dead body
    if (deadReplacement) {
       var dead : Transform = Instantiate(deadReplacement, transform.position, transform.rotation);

       // Copy position & rotation from the old hierarchy into the dead replacement
       CopyTransformsRecurse(transform, dead);
    }
}

static function CopyTransformsRecurse (src : Transform,  dst : Transform) {
    dst.position = src.position;
    dst.rotation = src.rotation;

    for (var child : Transform in dst) {
       // Match the transform with the same name
       var curSrc = src.Find(child.name);
       if (curSrc)
         CopyTransformsRecurse(curSrc, child);
    }
}