Got it, it was the animations after all. Just replace the following chunk of code to correct
for your models animations being "heartp 0" is a full heart and "heartp 4" being a dead one.
(I nameed my test model the other way around)

Also, and most importantly, your'll need to convert your heart to vertex animations. It SEEMS that you
cant use bones animation on view entities. Ive learned this from experience, not reading, so
there may be a way around it if you look.
I dont think its worth it for the heart, just convert it.
Open hetrz.mdl in MED, "Edit" dropdown menu and hit "convert to points animation" and say yes to delete bones.
Save and its done.

Let me know how it goes....
Code:
function heart_1()
{
	var heart_num  = integer(player.skill98 / 4);
	var this_heart = 100-fraction(player.skill98 / 4)*100;
	var h; for(h=0; h<HEARTS_MAX; h++)
	{	if(heart_num<h)								//if lower health than this heart
		{	ent_animate(hud_ent_heart[h], "heartp",   100, ANM_SKIP);	}
		else
		{	if(heart_num>h)							//if higher health than this heart
			{	ent_animate(hud_ent_heart[h], "heartp", 0, ANM_SKIP);  }
			else											//if ON this heart
			{	ent_animate(hud_ent_heart[h], "heartp", this_heart, ANM_SKIP);	}
		}			
		//insert standard heartbeat animation here if you want to.
	}
}



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