Actually, setting up limits and softness for joints is the most tricky part with ragdolls, and that's why ragdolls may look too unnatural in contemporary games. I also have problems setting limits, because I can't understand Euler angles properly.
Still, I believe ragdoll deaths are much more natural than pre-rendered animations - because it doesn't rely on collisional geometry. The best way (and the way we're implementing it) is to play normal death animation up to a certain frame, and then switch to ragdoll mode. This looks much better than LAU-styled ragdolls.
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