I've been playing around with trying to get my animations in the game a lot lately, and while the progress has been slow for me, at least I have learned a few things. Just today I decided to try and play the game's animation using Havok's Preview Tool(HPT), and tbh I don't know why I didn't think of this sooner. If you followed my post on how to import Blender models into the game then you probably installed this, regardless here is the link so you can get the tool if you wish https://forums.elementalgame.com/395707.
Now I apologize if this is obvious for some people, but for me it was a discovery since this is the first time I attempt at getting animations into a game and I'm just a beginner in Blender as well.
First thing I noticed is that the Skeleton's don't do anything by themselves. In my example I opened a Peasant's Skeleton just to see what it looked like and it was just the bare skeleton without any movement whatsover so I just closed it. You can find the skeleton in the GFX>HKB>Pedestrian folder, the file name is K_Peasant_Skeleton_01.hkb.
WARNING: Modifying these files could could cause serious issues if you don;t know what you're doing. What I did was just copy the files and throw them in my desktop so if I did anything funny it would just be a copy.
Now that the skeleton was there I decided to go to the GFX>HKB>Animation and noticed there was a "Pedestrian" folder. So checking inside the folder I found several files that corresponded to the actions they do like hammering, conversations, etc. I was like ohhhh these are the actual animations so I opened the Hammering.hkb with HPT and there was nothing at all. I was like hmm weird, so I decided to open the skeleton and the hammering file and boom the skeleton started moving. Then I added F_Peasant_Female_01.hkb and the mesh moved along just like it would in game. Only the texture was missing since I was playing from my desktop!

I then tried adding my Draconian Armature that included my 2 second animation and to my surprise my armature was affected by the Hammering,HKB because it started moving in a funky way, that didnt make sense, but was still affected.
So what did I learn? That you need to export the Mesh, the Armature AND every animation individually into their own separate hkx file then I suppose you add them using XML. Now my problem is that when I import into Softimage the damn thing changes the names of my vertex groups and bones so I'm not sure what to do next. Also I suppose if we make our models animation using an armature just like the ones in game we could use the animations in game.
You can see the names of the bones in the right lower right side of the HPT, maybe renaming our bones to that would allow us to use it. Another thing I noticed is that there are no "bones" in that list, only JNT which I suppose means Joints. Idk how to do joints in blender so that would be another question to the list
. Hope this helps someone out there 