In general, the cells get quite warm in the last bit of charging.
In the early part of charging, most of the charging energy is absorbed in chemical changes in the cell (ie the charging). Once the chemical changes have completed (ie the cell is fully charged), most of the charging energy goes into heating the cell. The resulting increase in temp can be used to terminate charging if the charger has a temp sensor. It also causes the voltage across the cell to drop slightly which is also used as a cue to terminate charging. (Most smart chargers switch to a slow trickle rate (typ <= ~50mA) rather than completely stop charging.)
So a certain amount of heating is normal, but too much is not.
The above is why you want a smart charger--it knows when to stop charging. If it does not stop the cell will ultimately overheat. (This is why timer-based chargers are bad--the user has no way of knowing the proper charging time and eventually the cells will be damaged by overcharging and overheating after the user has overestimated the time.)
BTW, charging too slow is also not the best for NiMH cells--the reactants develop a poor crystal structure and do not work as well as they should. A charging rate of ~.2C to ~.5C is best, but it must be stopped before the cell becomes overcharged.
The MH-C401fs charger has a switch for fast (1000mA ~ .5C ~ 2hr) or slow (300mA ~.2C ~ 5hr) charge rates--a nice feature, IMO. I normally use slow to be more gentle to the cells unless I am in a hurry. (I've seen no evidence that the fast setting has damaged any of my cells.) A number of other chargers also have selectable charging rates.
If you have the Ray-o-Vac PS-4 charger, just use it on the NiCad setting for NiMH cells (900mA ~ 2hr rate) and it should be fine. (The NiMH setting is a 1800mA ~ 1hr rate.)
BTW, for typical NiMH AA cells (2000mAh--2700mAh):
2hr rate ~ .5C ~ 1000mA
4hr rate ~ .25C ~ 500mA
trickle <= ~.02C ~ 50mA
A nice reference on charging NiMH and NiCad batteries is
http://www.batteryuniversity.com/partone-11.htm
Doug