Try the "Planets" tutorial in the Quick Start Guide. It is on the CD's if you don't have a hard copy.
Just guessing here is something to try.
1. Make the head a child of the body.
2. Select just the body with left mouse button, and the press CNTR (Center) as the object for you transformations. CNTR is located at the bottom/right of the interface. Once you press the CNTR button, you should see the center of the body. Use the Translate and rotate tools to make sure it is in the proper locatoin. A another quick way is to put the object around the 0,0,0 positoin and then press Effect/Freeze. Be sure the center for the head is correctly located too.
3. Press the OBJ (object) button at the bottom/right of interface to switch back the target of transformations to the objects instead of center.
4 Now when you want to rotate the robot with head select the entire hiearchy with right mouse button. Then rotate. The rotaton will revolve around the top parent in the hiearchy, which is the body.
5 Select just the head to rotate it indpendenty from the body.
If you are still having problems, try to duplicate this with simple objects you have created in Soft, to be sure it isn't a translation from Max problem. Sorry if I have misunderstood your problem.
Urp