The Blitz dot3 is using some kind of Non-world space light mode (or so) wich makes it kind of static.
--> Object space... if you move vertices like you do with animated characters you need Tangent space normal maps. Tangent space ones are perfectly good for static stuff too but are harder to light (more math etc) obviously. If only Mark would have gone the extra mile... *sigh*
http://en.wikipedia.org/wiki/Normal_mapping