Overall it's a really nice update. I have a few notes:
1. NPC dialogue - I really like the new interface. However, it's kind of annoying that being in NPC dialogue blocks access to the normal chat window. Also, I think it'd be better if it didn't go into the NPC dialogue interface if "the NPC has no quest information for you."
2. Walking speed - The animations look good. I think the new walking speed is perfect for, say, a guard on patrol or two friends casually chatting as they walk together. But in terms of actual transit the walking speed is painfully slow. If I had time, I would measure how long it takes to walk from Hydlaa to Ojaveda or BD fortress to make a point, but I don't because of finals. Anyway I think NPC walk speed should be the current speed but player walk speed should be increased. Maybe not back to its original speed, but some balance between the old and new speed. Otherwise give players a 3-speed option (casual walk, traveling/hiking walk, run). If you keep the walking speed as slow as it is it just encourages people to run all the time.
On a side note, will we ever be able to sneak while standing still? It's fun sneaking around but as soon as you stop moving you go back to the normal standing position.