NavMesh Agent Collision Jitter

I'm running into an issue where I have a two sided AI (Friendly, Enemy).

They are using a Rigidbody with Capsule Collider along with NavMesh Agent.

When the two interact it seems that the model is moving way outside of the actual collider and causing the model to jitter and bounce around uncontrollably.

The animations are not an issue. It did this before with the main player until I set it as a NavMesh Obstable which solved the interaction between the Player and Enemy/Friendly.

Here is a video examples of the issue: http://andrewkostuik.com/videos/jitter.mp4

Any ideas?

Thanks in advanced,
-ADK