i was having problems with the character animations for ages and tried everything on these forums but couldnt solve them. the problem to me seems that everyone who posts only gives you part of the answer.
so i put together this step by step guide, hope it helps.
1. open the updaterconfig.xml file with wordpad and edit the section titled mirrors it should read:
save the file and from the file properties box make it read only(the updater sometimes replaces this file). this may take longer but the backup server seems to have a different version of the files required???
2. from ur planeshift main directory delete all .dll files EXCEPT libcurl.dll, libz-cs.dll, xmltiny.dll and vfs.dll
3. next delete the config files. planeshift.cfg, psclient.cfg, pssetup.cfg. note this will require u to re-select ur preferences before u start the game again.
4. run the updater in recovery mode (updater.exe -auto)
5. run the setup, then the game and everything should be working properly
i hope this was helpful. let me know if u have any other tips.