When I started in BGE I found animation a little hard to learn at first so I made a tutorial on it.
This shows you animation blending and how to use the action editor.
Hope this helps someone out.
There’s some good stuff there, Great work!
I’ve also posted a tutorial on animation, I don’t want to step on your toes, it’s just something I wanted to upload for a long time but forgot to do. You spurred me in to action. 
I hope the two videos will complement each other since they are about two different kinds of techniques.
I’m not able to watch video at this time, but I wanted to ask if either of you talk in your tutorials about how to set up “states” and how to properly prioritize animation actions in the logic editor. That is one thing I seem to have trouble with constantly, for example my character’s falling or running animation may blend together with a jumping animation, and I can’t seem to figure out just how to set the priority or state correctly to prevent this. I’d love to see a tutorial on how to set up a character with several different states and animations for each one.
No problem, there’s probably some parts I didn’t cover in great detail. I also wasn’t aware of animation baking, which is pretty cool. I guess there’s always something new to learn :D.
Setting the priority on each animation actuator should sort this out. The action with the highest number will override the previous actions. So you might want to set falling to priority 1, jumping to priority 2 and running to priority 3. Then possibly blend jumping and falling on one layer and blend running and jumping on another. Hope this helps you out!
Is there any way to blend animations in the BGE with nodes? I find the logic brick system-layer- priorities system lacks intuitiveness and control. There is a great animations nodes add on but it doesn’t seem to support armature animations.
I think they are completely re-doing the logic system in blender 2.8 along with the animation system, but for now you will just have to make do.