After few experiments with bones in Blender, I fell back to C.A.T. (www.catoolkit.com).
I have a question. Would anybody be interested in CAT-like or PuppetMaster-like animation system for Blender? Animating system that would allow you to create a rig with IK chain set up properly in couple of clicks, with ability to generate nicely looking walk/run/etc. cycles in very short period of time.
I want it 
And I want it in Blender for seamless work flow.
Yes i am interested. Is it free? How this works?
will Blender Mesh+Bone will be used or 3rd Party models or we have to make our own.
Well, all we need to do is to find a coder who would be interested in coding it 
I bet a lot of pro who has superior knowledge of Blender and rigging would oopose, sayuing that custom rig is better… Maybe it is for them. For certaing purposes, like for movies, maybe custom rig would be more useful, but for animated movies, for game developers animation system like CAT would be essential. It would save a lot of time and struggle with software.
See my New Frog Dance Frog is from DAZ and animation in blender.
File is here
http://www.patricia3d.com/mpges/frog57.mpg
19 Sec, 320x240, 4.5 mb mpg