@wackedoutbiker
To import directly all the animation I suggest again the method I wrote before:
When you have a rigged character in milkshape with the ValveBiped skeleton compile it as an actor without animations. Next launch RFvfs.exe, "*.* select all files" in the file selector and then open your actor. Export the Body file at the root. Now, open the ct3.act file in the demo, delete the Body fie and "Add" the Body you have previously extracted. "Save as" with another name (choosing again "*.* select all files" in the file selector) using the .act extension. Now the new actor has the animations (naturally it works only if the skeletons match).