The model I am using is the businessman from CZ deleted scenes, and the sequence I want him to do is called "man2_idle which is him just sitting there. It seems to work fine, but when it comes time for the sequence (man2_idle) to loop, he just freezes in place and kinda twitches like the sequence is trying to start over.
I did the same thing with the original scientist model, and used the "sitidle" sequence with the "no script move" flag checked and it worked fine.
If you have CZ deleted scenes, you should extract the businessman model and see what I mean for yourself. You will also notice that when he walks around, it makes a footstep sound ever other step.