XNA Game Studio Express
As long as you're consistent with your units it shouldn't matter. I do think it's helpful to decide on your units up front and base them on what makes sense for your world. For example, in my air hockey game, 1 unit equals one inch, but in a tank fighter game 1 unit would probably be something bigger, like a meter, foot, or yard.
It's probably best to make all of your models to the same scale so that you don't have to scale everything to the proper size, but if you don't have control over the scale of your models you can always scale them in the game code.