Can this be done by using textures? Anyone know how?
In the book Introducing Character Animation with Blender, shape keys were used and controlled with armature bones.
Yeah, I know it can be done with bones, but can it be done with animated textures?
Um… why not? A blink animation on a texture is just an animated texture. Search the forums and you’ll find a script.
I made a tutorial. Click on the links in my sig =D
if you click on blender resources, I posted a tut on my site there. Check it out.
this crashes blender for me after it changes the texture once… 
Blender REALLY doesnt like my PC!!!)
You using nVida? or ATI?
Killer, I can’t get your method to work with GLSL enabled. I think I will just do it with bones, or not do it at all…
It doesn’t work with blender materials enabled, which would include glsl. read cogfilms animated procedural texture tutorial for REAL textures that are animated.