Just tried and it's still happening for me on new model uploads.
Using both OSX with safari and Windows 7 with IE. Scale is selected as mm from the drop down menu but it ends up trying to do it in meters, model is too big and ends up in inches.
This particular model is 20 "units" in diameter, as you can see from the link shapeways ends up making it 20 inches despite my selection of mm from the drop down menu when I upload. On other models that are bigger it changes the scale from meters to mm and ends up correct by an incorrect means.... like I say this problem only started for me on sunday afternoon - previously I never had a problem.
https://www.shapeways.com/model/894761/damiano_flir_pod_beari ng_mount.html
when I first enter the model page i get this message
"Attention
Your model was too big for the printer when using the meter scale
However, we scaled your model using the inches scale, now your model at 20.0 x 20.0 x 5.0 inches, or 50.80 x 50.80 x 12.70 cm can be printed!
If this is not the scale you intended, please rescale your model and re-upload."
By first uploading a part that gets converted by shapeways from meters to mm and then updating the file with the actual desired model I end up with a correctly scaled model....