I'm just trying out Unity's new Mecanim animation system and I'm kind of impressed. What it is, is an animation state machine where you can adjust transitions more carefully. Coupled with their navmesh system it's pretty fun to play around with. I put a navmesh agent on a character, gave it a destination, and then played with speed, acceleration, turn radius, and transition fade between idle and walk. It was amazing how much better it looked after playing around a little bit compared to the standard settings. It actually does a lot more than what I'm doing with it, also. I kind of went into overload watching their tutorial, but for my purposes, it's pretty cool just messing around with the transitions. This latest version is the first one they are giving away their simpler version of navmesh on the free version. It has to be baked in and probably would need some raycasting for dynamic changes. They also have realtime hard shadows on this version for free.