If only I had a way to check how much video memory is actually used, I could test it. To find out if it does or not, just create some high-poly model and texture it. The first test would be unanimated. Load this into some test level and check the video memory usage. Next, make a few small modifications to it for a test animation and load this into the same level completely unmodified except this model. Check the video memory usage then. If the animated version takes more video memory than the nonanimated version, then vertices and things are stored in video memory. If the difference is only miniscule or unchanged, then vertex information is stored in system memory instead of video memory. It's the best way to find out.