Well, are they? For some of the human and humanoid animations, I mean. It would REALLY make the game look soooooo much better. You notice it a lot in games like Halo: Reach. A Skirmisher leaping onto a roof just looks so nice and crisp.
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/14/AR2005081400853_2.html. That article is several years old now, but it say "The company's kitchen is out of commission to make way for the growth; in the works are a sound studio and a "motion-capture" studio, where an actor's movements are recorded before they are translated digitally into the game world."
http://www.havok.com/index.php?page=havok-behavior
Because they are using the Havok Behavior tech i would guess not. Just seems to negate a lot of the need for the Motion Capture stuff, although if they did i wouldn't complain.
Not until later on when i get bored anyway
Havok Behavior still need animations to work from. Otherwise it would be like trying to build a lego castle without the lego pieces.