Hi Raxx, thanks for your reply.
Unfortunately, the link you gave me does not address the issue I am seeing with the Sequence editor.
I have no problem getting the bones to rotate in any direction I want. However, when I rotate the bones using the "Middle" mouse button" to rotate about the "Z" Axis, the X-Axis does not rotate about the "Z" Axis along with the bone, while the Y-Axis does. If I rotate exactly 90 degrees, then both X-Axis and Y-Axis are in the same plane. I do not think it should do this, as now it is impossible to rotate the bone using the "Left" mouse button in any direction other than what can be done with the "Right" mouse button. The X-Axis should rotate 90 degrees as well (imo).
Here are the steps to reproduce the issue.
1. In Figure Mode: Add one bone to the root bone.
2. In Figure Mode: In "front" view, rotate the bone 90 degrees so it sits horizontal.
3. In Figure Mode: Remove all movement restrictions for that bone.
4. In Sequence Mode: Load the figure and "Show Axis"
5. In Sequence Mode: In "front" view rotate the bone 90 degrees so it is pointing strait down (or strait up) using the "Middle" mouse button.
6. In Sequence Mode: Go to to "Left view".
7. In Sequence Mode: Try to rotate the bone using the "Left" mouse button - Nothing happens.
8. In Sequence Mode: Go to "Ortho" view try to rotate the bone using the "Left" mouse button. - You get the same rotation as using the "Right" mouse button. This is because the X-Axis and Y-Axis are coincidentally in the same plane.
Also, when I rotate about the "Y" Axis, neither the X-Axis or Z-Axis move, as such the limits on these axis do not rotate along with the bone.
To be clear, when I mentioned X-Axis, Y-Axis, and Z-Axis above, I meant the colored Axis that we see when we use "Show Axis", while "X" Axis, "Y"Axis, and "Z" Axis denote the non-changing screen coordinates. The issue is that the colored Axis do not stay coincidental with their corresponding Bone's Axis when the bone is rotated about the "Z" and "Y" Axis.
Again, this is not what I would expect. Please try it, maybe there is a reason for this behavior I am not aware of.
There is also another issue where "Undo" does not undo bone rotations (V97d). It just deselects the bone. But that is not so bad.