I just tried a sample map (with hammer set to episode 2) and have a scripted sequence and an actbusy for a few citizens. When I run it, they turn into the cheap citizen model and stay still. I also noticed lots of models in hl2 like blackout.mdl are not in the world model list.
I never noticed this. Is this supposed to happen? I thought everything worked across all episodes (if you had them)
Oh yeah, the console error: