Ok this is what i am doing, i have 3dsmax 2012 installed, i have the panda exporter plugin installed, i have a rigged model in 3dsmax that has the physic modifer to hande bone movement with the vertexs, when i export .x and then run the .x in a model loader that supports animations , the animations dont play but it says it has animations in the top left and it has 35 bones, this is really starting to pee me off big time and i would like expert help on the issue if i can.

What i dont understand is i have a sample appilcation off the internet and the model dosent have any bones at all , yet the model can do diferent animations such as walk,run,jump etc, how can you do all that if there is no bones needed?

In answer to your second question, search for Vertex Morphing, Vertex Tweening or Vertex Animation. Basically the older games/engines used this approach. For each animation keyframe you store a copy of every vertex positioned appropriately. No rigging/skinning/bones required.

For your first question, can you examine the X file as a text file and see what is going on with the AnimationSets?