Does Mesh Deform modifier work with the Game Engine?

Im trying to find the best and most efficient way possible for rigging characters (as there might be many creatures). So far they are all kind of hard to implement. Suggestions are welcomed!

Also, I did a model with his arms down (instead of the usual T shape). Is there any good way to rig a model like this? Or should I make him T shaped first? I did him like that so that when I bake the arm muscles will be better shaded.

thanks

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I am having this same problem with the T shape. The apply deform py script included with blender will make a duplicate mesh in whatever pose you happen to be at the moment you apply the script
but the armature will still be in the pose that it was in the rest position/edit mode. Try running the script with a arms down pose. The moving the duplicate mesh to another layer. Go out of pose mode into the armature edit mode then rotating the arms into that same position. The do a ctrl-a in the edit mode to clear the rotations from the armature. Unparent your original mesh from the armature becasue at this point it is in the wrong pose for the way the armature bones are rotated. Move the original to a third layer or delete if if yo want to. Bring the dupicate mesh back to the layer that your armature is in. The duplicate and the armature should now be both in and arms down position. Now parent the duplicate mesh to the armature and then pose as you want.

I hope that was clear.

So basically the trick is to pose the Armature in T shape, then go to Obj mode and unparent the mesh from the bones so that the mesh keeps its T shape? Or viceversa if you want the arms down. After mush pondering on characters, textures, animations, etc, I think I’m going to try to start animating with envelopes and see how it goes.

thanks for your help