Hi there Bugtrooper.
You've done an excellent job on the legs.
The arms are not working properly because You have no settings for the z axis in your left and right upper arms. Go to figure mode and give each a Z axis value of -90 and 90.
Now, in sequence (or scene) mode, you can lower the arms using the z axis. (middle mouse, purple axis).
Edit: I've taken the liberty of deleting all arm keys and uploading the edited file for you to download and start again on the arm movements. (have left all leg keys intact, you've done such a good job on them.
)
Heres the link to walk tut, for help with arms.
And file link should be in this post.
