There's another sample for skinned characters, further down in the list of samples.
Note that there's a limit to the number of bones you can use. I seem to recall it is about 56 bones in the sample, although by squashing the bones from 4x4 to 3x4 matrices, you can get it up above 70 pretty easily.
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Jon Watte, Direct3D MVP
kW X-port 3ds Max .X exporter
14 days after getting my RROD box back, it's going back for service again. Grr.