Cheers magicsy
Getting used to the graph editor for the animation is a bit wierd but quite addictive (reminds me a little of flash's timeline).

Thanks for noticing the clipping problem with the skirt. There is also some occuring around the arms. I think removing the main crease down the front of the skirt should make it deform without cutting into the model. The inner armpit area also needs bringing right in so that no problems occur there.

Its all keyframed (just guesswork) at the minute so I'll probably go back and add some IK arms/legs to the rig to make it easier to control.
I probably need to find some reference vids of people walking to make it better.