Okay that makes sense. And I sent a reply to your PM.

If it helps, I just noticed that version 1.6 isn't offered for the Basic version of UFE. But the UFE Pro has version 1.6. The Basic version of UFE is version 1.5. I read the change log and apparently version 1.6 fixes compatibly issues with Unity 5. Is it possible to offer version 1.6 update to users who purchased the Basic version of UFE? This could be the answer to fixing my issue with getting UFE to work.

I'm using the Basic Version of UFE offed on the Unity Asset Store. And yes, this issue I've been facing with UFE Basic has occurred on a new project, on a newly installed / reinstalled UFE Basic, and newly installed Unity Editor (both version 4.7 and the latest version) on two different computers, one mac and the other PC.

That's what I initially did though. I downloaded the engine off the unity asset store, imported it, clicked on the UFE folder, then clicked on the scene folder, then doubled clicked trainingroom.scene and clicked the play button. I only started to tinker around with training room prefab stage, adjusting its plane's coordinates and what not suggested by other forum members in this thread, after the few times I didn't have any luck just starting up the game normally.

Sorry, that wasn't clear of me.  I basically did what your are assuming I did: Click the UFE folder, Click the Scenes folder, double click Training Room, and then press play. Each time I get to the gameplay, the characters fall downward and the stage floats upward out of the camera's view. I've tried playing the prefab game on both a mac and PC and on two different versions of Unity encase that was an issue (Unity 4.7 and 5.1), but I still had the same issue each time. The only error messages I've noticed so far are ones to do with setting up keyboard inputs.

That didn't work as well unfortunately -_-

When I went to tag the plane of the prefab training stage as "Ground", I noticed there wasn't a selection option for "Ground" as a tag. So I had to create a new tag called "Ground" for it. Is that correct?

Also, when you say I have to make sure the plane of the prefab training stage acting as the ground is a "certain height" and it has to be "0.6 or 0.6 margin of error", do you mean the positioning of the plane in height or the scaling of the plane in height? And what should I set the height to?

I just recently started learning Unity and I'm doing a fighting game project for my game design class.

I just wanted to see how the engine worked on a basic level so I started up the game after dragging the  "Scene" into the Scene and pressed play. When I got to the gameplay after I selected my stage and the announcer started to count down the match, the demo characters just fell out of site of the gameplay camera and I believe the stage floated up above it.

Then, I tried dragging the prefab training stage into the hierarchy panel and set its coordinates to 0,0,0 since I heard that could fix the issue, and pressed apply. I started up the game again and got to the gameplay, and the same exact issue happened.

I was thinking it was something to do with the stage's collider or the demo character's collider, but before I start messing with colliders I want to see if anyone has any idea how to fix this issue.

Any help is greatly appreciated.