I hate to double post but I felt this was interesting enough to warrant it. We now seem to have facial animations... which was unexpected - they're just not used very often in the OC. I have no idea what patch this was implemented in because it certainly wasn't there at launch - as far as I could tell. Some of the animations look a little... umm... odd, or at least badly named. "FACIAL_ANNOYED" would be better suited as "FACIAL_INTRIGUED", for example.
I wouldn't have noticed this but for a strange change in Sir Nevalle's features on a recent play-through:
Now to begin the unenviable task of going through the conversations and adding these animations into them - hopefully helping to solve the "bobbing head" issues.
Edit: Hmm... just looking through a few models in the animation viewer, it seems that a lot of the facial expressions are entirely based around the eyebrows - I guess the lips are to do with the lip synch files rather than the animations. Still... it's better than nothing