Well I tried the suggestions given by the Wavelength site, but as it turns out, I had already made most of the recommended changes already, except for blocking the rendering of the viewmodel in third person mode.
After fighting with the problem some more, I finally got the the upper body to render the correct animation, but despite my best efforts, the lower body still refuses to accept the ACT_WALK animation. The lower body is stuck in the ragdoll mode and just drags the legs and feet across the floor during movement. I have also tried to brute force an animation sequence onto the model by altering the "void CBasePlayerAnimState::ComputeMainSequence()" such that it always selects ACT_WALK as the ideal activity and selects "run_all" as the 'animDesired'. It still refuses to accept the lower body animation. I'm out of ideas. Any thoughts?
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