animation not playing in ge

not sure why im having such a hard time, ive done this a thousand times :mad:
heres the file:
animtest.blend (1.01 MB)

armature modifier is not the first in the stack.
also note that subsurf has to be recalculated every frame and can make things very slow.

wow i had no idea the order of modifiers had such an effect. Thanks for your help!