That's what Im trying to accomplish. There has to be away to do it. So far my every attempt has failed because when I use the SetPos command, something weird happens to the object. It can still be accessed, but becomes invisible....

I need to let the player adjust the xyz coordinates in game so they can build a house or structure anywhere they want. This has to be possible - it was possible in morrowind, I saw it done in the lichcraft2 mod by VenonByte.

Does any one have experience doing this or know the problems associated with this and ways to overcome them?

I have a mod just for doing that: http://www.tesnexus.com/downloads/file.php?id=32257

Take a look, it may help you.

The reason for the behavior you experienced is that, when you move certain type of objects, the engine updates the visuals, but the collision stays behind. You have to enable and disable the object in order to put it back together.