Game Engine, Help!

Hey guys, I was doing this tutorial,
and I created a strange character, rigged him, gave him a test texture, animated him, basically did everything the tut told me. But when I got to the part where he incorporates the GE, I followed the steps to find out that my character doesn’t treat armatures in the GE the same way his did. I uploaded the file to Google docs so you all can see if you can tell what I’m doing wrong. I have Blender 2.5, just like he does, and I did everything the same as him except creating IKs.

Please Help!

Thank you soooo much!