I would like to find a good tool for creating animated characters (Avatars) for some of our eLearning content. Unfortunately, CodeBaby is not in our budget ($10K). I've tested Flipz IV Flash, but it's not quite as robust as I'd like. Are there any other programs that might meet our needs that are more affordable?

sculptoris.com and sitepal.com have interesting-looking tools, depending on what you need. I have not played with either, but both are "on my list"...

Robert, I might suggest looking at www.noahx.com.. inexpensive, easy to use.. maybe what you are looking for..
If you need I can get you in contact with the folks there.. steve

I recommend Media Semantics (www.mediasemantics.com). It has a number of avatars with good price ($295). The tool is very easy to use and the output is pretty cool.

If you have bigger budget, you may also want to look at Vcom3d (www.vcom3d.com)which offers 3D characters. The pricing is $3500 or $5400 (with gesture builder).

Hope this helps. I have been looking for such a tool for long. And the above is my research result.