Put color map w/alpha in skin 1, put normal map in skin 2. assing the material in the action. Also try putting this : my.frame+=1; in the action too. Set my flare=off; , and my transparent=off;

Make sure there is a dynamic light near the model.. with a color and lightrange set, and my.light=on;

If you cant get it work this way.. i dont know how to help you.. except you can biuy the SPhere Engine which can do all this automatically for you.