Been several months, and I'm still experiencing this annoying issue. Basically, I'm unable to preview any NPC's faces in the Face Anim Preview window of the Actor Editor. The window appears to be "permanently minimized", and no amount of clicking / dragging on it changes it's size. Here's an image of it:

http://i869.photobucket.com/albums/ab252/Lazarusmage/FaceEditor.jpg

You can see a "sliver" of the grey-colored preview window on the extreme right-hand corner of the Actor Editor, you just can't do anything with it. Obviously, this makes creating custom face morphs impossible. I never had this issue with G.E.C.K editors, or the Oblivion Toolset. I sincerely hope someone has found a workaround to this problem by now. If it makes any difference, I'm running the game/editor in Windows XP. Many thanks in advance.