It basically involves hex editing and compiling the right models... there's no better way to explain how to do it than to make a tutorial really. I've been meaning to do it for awhile, but I have to get my input for TSLRCM 1.8 done first.
More or less. I did it in one of the mods I sent you to put up on Kotorfiles. lol Haven't tried my hands at replacing model animations though... generally when you do stuff like that it tends to be a little buggy.