jhook1, one of our most active developers has produced some promising videos of character animation.
Posted by pchan3 on Jul 17th, 2011
One NPC in the 'Beshara' cell (our starting cell) goes through an entire animation cycle. This video also shows Hair on the character, so clothes aren't that far away from being implemented!
Note: Death animations are still being worked on. there is still a long way to go to be perfect. Hope you have enjoyed this little demonstration and look forward to future incremental released of the source (and binaries). :).