Return of Reckoning

I just installed the game the other day and it's been running well. The one issue I'm having is with npc animations. Anywhere where two NPCs are fighting, which is all over the place, instead they are simply standing looking at each other. If I fight an npc, they do show the normal fight animations and turn to face me, etc. Is this a known issue, or is there something I should be troubleshooting/reporting?

Thanks!