I had no luck with morph targets. As far as I know The exporter relies on bone deformations only, and weight maps are critical. It's kinda strange though because vertex deformation is completely possible with code in Director. Seems like the exporter could be updated to take this into account.
I tested the same thing in max, and it doesn't support it either.
It's not possible to export morph targets to Shockwave3D format (from any app). Bones should work.
Also, in general you should consider the installed base of the technology, and temper that with how much work you have to do in order to get what you want. There may be something else that does morphs, but shockwave has a higher install base, so there's the user inconvenience factor to consider.
by "installed base of the technology" do you mean the average co mputer setup? Or what the software (i.e. director) delivers at this time?
I suspect "higher install base" is like lower browser penetration, but isn't that the main reason to use Shockwave and not some other solution?
By higher base I mean the number of people who already have Shockwave3D installed, yes like the browser penetration thing. And yes, it's one good reason to go with SW3D. I was just slightly discouraging you from considering other technologies because it doesn't appear to be the easiest way to get what you need. =)