What the hell.
Looks like that converter changed "00 01 00 00" to "04 01 00 00" because I must've made a serious mistake somewhere.
that's why it wasn't working in game, re-doing the entire process.
[edit] seems to be working much better now, but I used the wrong m2's, forgot to use the blood elf ones.
[edit2]
Awesome, so now my Blood Elf Npc's are finished.
These guys used to be gnomes.