Well, I've studied how Ultima Online does it. Note of course that Ultima Online is a 2D overhead orthoganal isometric, but the concept is the same overall.
For each hair style, weapon, item of clothing, etc, you need an animation set for each movement the character will be making with that item, ie walking, swinging, guarding, blocking, sitting, etc. You have it a little easier because you don't have to do it for every possible angle of view if you set up your vertices correctly. These are then placed over the "base model" of the human figure, in the correct order, much like a paper doll, for each frame. For you, it would be something like dressing up a Barbie (or GI Joe depending on gender), with sets of vertices. The accessories are drawn relative to a base origin on the "basic model" so they show up in the right place. Each accessory only needs to be rendered once in one color for all possible motions, as color (and texture in your case) can be easily changed. Some of this you can get away with easily due to your medium, such as just coloring the torso for a tight-fitting shirt and moving some things such as helmets and armor relative to where the character's "skin" is, but many things, such as weapons, "flowing" clothing like capes, and anything else that can move somewhat independently of the character, are going to have to be done this way to look right.
Can it be done? Yup, Everquest does it. Is it a lot of work? Absolutely. Is it too much work for you to do? *shrug* You tell me.
I hope this makes sense. If not yell and I'll send you some examples.
g'luck
-fel
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