They shouldn't draw the hitmark on the wall when it registers as a hit on the player.

It seems they are using similar hitboxes as in quake3, I dont see anymore problem in that.

init terrible the 'opponent' is even turned which leads to a bigger hitting area, being infront of someone who is turned in a 45 degree angle gives you the largest hitbox there is.
This is because q4 has a cube for a hitbox. so it is only logical that you can fire past some area's of the model and still hit. if however you are facing eachother the hitbox is at it's smallest and then the hitbox is normal (more or less)

ps
It doesn't seem too big to me.

There is a bug with netdemo's currently. It looks like you have the crosshair way off your target but still hits. Just check this demo out: http://esreality.com/?a=post&id=912947

May be something wrong with the hitboxes anyway though.

OK, I actually watched the demo now. That is probably intended, seems like its just one big box and same size for all models. You could argue that it should be made smaller though, would decrese the rail dominance maybe.

lets just make the models bigger!

yeah, like the CS models in earlier versions which were adjusted to the actual hitbox....

hello, its 2005 now