Thanks for all the replies to the question on point processing.
For the most part I learned that not too many folks out there are using Pro-Engineer as their main way of doing point processing. Many people brought up Geomagic as well as Imageware. There was no "silver bullet" for Pro-E when it comes to point processing. I did get a couple of responses saying to use less points and then use REX. We don't want to use less points because we do not know what we are losing if we do that. Hopefully the REX will be better in WF 2, that's what we were told by PTC anyway.
We just had a demo of Catia V5 and I must say that they are the closest that we have seen to having a complete process in one package.