
I think I got it to work...according to XSI animation style....add a null at the pivot point(or on the surface where it turns), add the 2 meshes(the handle and its joint) to the null, making it joined(hence a child of it) [didn't use any IK stuff as it was just a simple one mesh animation(is that ok?)]. Use keyframes to add start and end animations at desired frames and done...
I did all that, the animation(move up) is 60 frames(so about 2 sec at 30fps? or is it a different scale ingame?)). It looks nice (my 1st rigged animation(or something like it

)).
Now what confuses me is "idle" and "idleU"...I mean "moveU" and "moveD" is what I described above (?), is "idle" and "idleU" more of a state than animation?
animevents might be more of a status of the lever? I will check online about XSIsource workflow (sigh ....time...lol).
Hope I got all the ideas correct ....
(have to add a material/texture before XSI allows me to export as .smd
the IK stuff really wants me to do some mech animations

)