While preparing to upload an older mash-up of mine; I noticed the knife sat below the belt a little. I want it to sit on the belt. This is very easy to fix thankfully.
Changing the numbers or pressing the arrows on the axis points will move it around. Changing the value of the 'x' axis will move my knife to the left of right; changing the value of the 'y' axis will move my knife forwards or backwards; and changing the value of the 'z' axis will move my knife either up or down. I want to move it up.
Instead of punching in numbers next to the 'z' (which is better at moving things more precisely or if you need to move them only a little bit); I just moved the knife up three points by clicking the up arrow next to the 'z' dialog. And it is now right where I want it (don't forget to save).
Moving things around on a mesh can help greatly with clipping, at the same time it can also make things clip more in game. Don't go to crazy with moving things, try to only move them a little bit because some items will float around your character in game all weird. If you have to move anything major (like a bow on the neck to the feet) you will probably need Blender. I will also suggest to not change the rotation or scale of the item; these are a lot more trickier to adjust and can really mess up your mesh.
Hope that helps someone (:.