After lurking at yesterdays meeting(and hearing that the SA package is not
working with the Cobalt Morph) I tested the Skeletal Animation Package with:
http://www.dmu.com/cobalt/CrusoeWeb.zip rather than one of my other Cobalt Images and got a working example.
An odd side effect:
http://www.youtube.com/watch?v=DYwc_OwOT4o the plane shows the grass.bmp and panel.jpg relative to avatar movement.
Not sure if this will help trace back the bug in the Cobalt-Morph. I've been
tearing my hair out over this, glad to know I wasn't doing anything to silly.