I just looked at the Blender 2 Ogre Wiki - AnimationExport and I assume you are reading the same thing I am. It does seem like the structure of you animations would need to be reworked. I am planning on reanimating a mesh tonight I will post on what I find. @BigBob if you would also post if you find a solution sooner that would be great it would help me with my project as well.
After about a year I have finally fixed the spikey model issue.
I am currently going through the process of updating my Android applications.
These bug fixes were major obstacles in making games for Android. Now that they are solved (10 months later) I am able to continue my Android development
The new update is now available at Google Play.
The updated source is still on my github
The game now also contains a river crossing scenario as well as a family to travel with.