Possibility of such applications using the lip sync engine are web bot for micro sites, new readers reading podcasts, and Site Pal type characters integration without paying for any services and creation of CBTs and elearnings with offline way to add speaking characters.
Here is a second demo of a podcast reader app created with AS3 and Flash CS3 that uses AS3 LipSync engine and a virtual guide similar to site pal. The application loads the podcast data from remote server and tries to load the audio file. The characters lip are made to sync the audio mp3 using the AS3 LipSync Engine.
This demo does not use any thirdparty service like sitepal. This is purely offline solution.
URL of Demo: