This mod is definitely a good start. The models are quite good. The textures look decent, but a little bland. A little bit of variation could make them look really good, I think. On the buildings, for example, trying using the dodge/burn tool (assuming you're using GIMP) to darken the edges of some of the textures and to add a bit of variation.
In shiphouse.xml, line 31 reads "<upgrade name name="naval_development" />". This is, of course, wrong. I have no idea how you got it to play without fixing this, because I couldn't even load the faction without changing it. The same goes for the morph command in transport_ship.xml. It refers to the morph skill by the wrong name, "morph_skill" instead of "morph".
Also, there are some non-fatal errors/issues I found, like the fact that the Barracks has a command for producing a unit called a Runner, but instead it produces a Halberdier. All of your boats are size 1 for some reason. The Shiphouse can be built on land, but I think that's just a GAE issue and can't be fixed from a modding standpoint. It might make more sense for the Galleon's sail and the Warrior's shield to have the same symbol (I prefer the shield one), but no big deal either way. You have both a Worker and a worker_navy, but I'm pretty sure only one gets used in the game. Some of the units have g3d files that they don't use (the Runner, for example). As far as the animations go, they really do need to be redone. Your units really move more like marionettes than real people. I'll try to find time to take a look at your blend files and see what you've got going on, but it's certain that something isn't being done right.
