We design installation using a combination of Max MSP and processing. I am wondering if you can intergrate animations which are controlled from live input algorithms. We already have live movement that can control sounds and as we get better at Blender we wonder if we could do the same with animations we create in Blender.
Basically you could use the game engine to perform real time updates using input from another system. You could trigger playback of pre-recorded actions using an Action Actuator Logic Brick by a script that does the communication with the external component.