This page contains obsolete information (valid only for SDK 3.6.8 and older). It is kept for reference only.
You can find up to date information about SceneRoot at the end of this page: Character Authoring in Maya
Currently if you prefer working Y-up in Maya you will have to create a SceneRoot node which encapsulates your skeleton, then rotated to be standing up in Y-axis (this means your default orientation should be set with Z-up.) What this means is that it allows you to export your assets technically as Z up. The reason for this is that the exporter does not convert joint orientations from y to z so you can use this node to get the best of both orientations. Correct joint orientations are necessary in order to get proper ragdoll simulation in Sandbox.
Here is an example of how SceneRoot effects joints:
This is a character setup in Maya
This is the same character in Sandbox
In Sandbox but exported with Z up checked and SceneRoot group node