A general update to show that I've caught up (for the most part) to where I was previously with the issues with the old animation system and integrating Mecanim.
Also, damage indicator systems are now up and reporting the correct damage as well as Navmesh integration (it's actually very easy... it's it's own movement system in it's own right.)
Get Unity 3D here:
http://unity3d.com/
Check out Playmaker here:
http://hutonggames.com/