Lantern Animation Test

I think I've now entered the stage where I'm doing final tweaks and adding in the little details now. Yesterday I made a couple of decals for like grunge and splatter for the base of the walls and roll up doors to emulate the build up from people walking around in a damp wet alleyway. I also created some leaking damp decals to put around things like air vent and air conditioner units to replicate the build up underneath such assets. 

But a couple of days ago I made a quick animation for the lanterns. It's only a quick test more than anything to see how they would look in UDK. However I'm having some trouble getting it to work. I don't know what I'm doing wrong as I've never imported an animation before so I'm sure my next couple of days will be looking up tutorials just to get it in, to which I'll probably find I'll need to redo it anyway.