OK, for those of you into machinima. This is the wow model viewer, I downloaded it and man its cool. You can see any item, any npc, creature, etc etc. You can make them do emotes, have them hold any item and even import your character from the armory.
Very cool stuff
http://www.wowmodelviewer.org/index.php?option=com_remository&Itemid=35&func=select&id=6And the reason I say I know how they did it is that these guys vids
http://www.youtube.com/profile?user=Myndflame have some amazing stuff going on and I always wondered how they got the models to react in that way.
Not sure if this is what they used, but they give props to it at the end of one of their vids.
Nick- Very cool stuff, you should check it out.