Yes, currently the animation state of the avatar has nothing to do with its collision proxy. Sometime after the next generation of physics engine has been installed we will look into colliding the limbs of the avatar with the rest of the world.
OK, maybe this isn't what the poster of the last question was referring to, but I don't think there's an urgent need to have limbs of avatars collide with stuff during animation that would require a new physics engine to implement. What's needed right now is for the collistion volume to follow the skeleton of the avatar when it's animating. At the moment you have people running dance animations where they move 5 maybe 10 metres across the floor and travel right through each other. It looks very strange and "breaks the metaphor".
There's another problem with dance animations which is that the 'lookat focus point' doesn't follow the avatar (neither does the name tag bubble) during animations. Thus if you want to get a look at someone it's often impossible to get a lock on them.
