Interact with target sends my characters running?

If you do not put the W at the top of the action list (right click it, Move Up or ALT+UPARROW), then the W will interrupt the later movement triggered by the CTM and IWT, and the toon with just take a step forward. If you spam IWT, then yes, they will just take little steps forward.

For some reason whether I put the W in front or at the end, I cant skin from my Main window.

[bob]

That is possible. Different targets may respond differently. The problem the W is there to resolve is usually associated with an in combat mob that is moving around, rather than the corpse that is not.