Avatar in world as object to animate?

I have seen a few SDK2 worlds with avatars that are walking around via animations.

Is it possible to add an avatar I created into an SDK3 world as an object that I can animate? Have not tried yet. Is this something a newb like me can even do? Any tips if so?

Can I just load an FBX file like a normal object?.. Would this break anything?..How would a guy animate this?.. is there a guide for this?

Update: attempted this by just trying to add my FBX. It added but then just sits in T-Pose and then it breaks my unity upload. I am totally lost now. Fixed the Scene but I just want an NPC hahahaha