Putting this here hope it help.
(Extracted these out of my PM with a friend)
I checked it. and it is working ok.
As you see in screen shot above there is lots of monster models (bip01,bip02,bip03,..) I selected to show only two of them .(at bottom of screen shot i only selected two layer to show and other layers are hidden)
so you better to remove others and keep one of them or open a new blender and append one of those to new blender file(i did this way).
then i tried to save it as .blend and convert it to .j3o in jme SDK but it failed (i think it is because of file size is big (160 MB ) (you can try to load .blend in code using asset manager like this
assetManager.loadModel("path to your blender file). i think loading it in code (not in SDK) will work without problem. (make sure to bake animation first in blender)
but instead easy way is to first export it to ogre then load it in jme (for doing this you do not need to bake animation , ogre exporter will do this automatically. )
Or you can export it to xbuf format then load .xbuf in jme sdk and convert it to .j3o (i tested with this way)
You can find more about it and how to use it here http://www.xbuf.org/
and searching forum .
Here is model in JME playing animation
Did you do anything extra when you exported the blend files to xbuf?
Uncheck Texture Alpha
Uncheck Material Transparency