Quote: "I've heard that Blender cannot animate models"
Yes, it can
I am sorry, I did not see your thread. I don't believe blender can import .x (correct me if i'm wrong). So you would likely have to open the entities file in your entity bank, find the .x file, import it to fragmotion, then export it as .obj or another file blender supports. Edit it, then re-export it as .obj, load it into fragmotion, and export as .x And now I realized .obj does not handle animations

, so you will have to use a format that does. Good luck!