i don't know how anyone can stand the very jerky animated "models" that are corrently "the top dog" of moving creatures/etc in second life.
the avatar animation is perfect - ingame avi's are only limited interms of movement to what a human can do, which is pretty much intended. i suppose it won't be entirely impossible to use the current system (or maybe it is if the prim animation limit is 32) but even if it isn't, the outcome will only be a fraction of what i will tolerate.
please LL, can't you start letting us upload external models? animating as it is now isn't exactly on everyone's priority list, but im sure loads of people will start to get into it and use it when the system is updated aand improved.