Bwian i also used the mace animation. Now that i think of it, for the goblin and for some time with the orc i used a two handed axe animation, which you saw didn't work.

also when the animations suddenly worked i noticed that the weapons (and the shields) floated further out, as far as i remember you also had that problem? and as you did i also fixed it by assigning the weapons to the hand bones. Before, the arms stretched themselves freakishly to still hold onto these floating weapons. perhaps that is what caused the weirdo arms?