Cool! I made one adjustment and it worked perfectly for me. I just imported the PSD file, recorded some audio with lipsync on, and it worked.
The change I made was because the different mouth positions are only the bottom part of the head. "Neutral" included the top of the head. So I copied "Neutral" to just below the mouth so all the mouth positions layer on top of the complete head. Then it worked perfectly for me. Oh, and remember that it picks *one* of the children of the "Mouth" group to display, so I typically hide all the layers except neutral.
I then added bones and draggers for the arms, and away it went!
Awesome! Thanks so much for taking the time! I'm back in business!