Yeah, I think the animation component on codeplex is rather old and outdated. I actually got a X file with animation running with the skinned mesh sample on creator's club. But it seems to mess up the model rather badly. It looks like some kind of snake or something. Pretty nasty polygon soup. :(
I have also looked into the collada loader in Dungeon Quest (http://benjaminnitschke.no-ip.info/), but it's so tightly integrated into the game. It will take some time to extract it into a seperate lib.
I have started looking into Blender now, but it really isn't our artists first choice. He is used to truespace and won't be as productive with blender. I found a nice article about creating content for XNA with blender though: http://www.stromcode.com/2008/03/10/modelling-for-xna-with-blender-part-i/
I can't believe it is this hard to export content from a 3D package into XNA. It's always animation that seems to be the problem. Static geometry is easy to export.