dont use image names use the name you gave the entity, the one that is listed in decorations.dat, in your case NPC01
just import your four frames through the editor, your idle frame will be imported as sprite slot 0 and death frames will be made into sprite slots 1 2 3. they will have correct names.
try this as NPC01.states
image NPC01 0 3
state IDLE NONE 0
frame 0 0.25 0 0 0 NONE
frame 1 0.25 0 0 0 NONE
frame 2 0.25 0 0 0 NONE
frame 3 0.25 0 0 0 READY
state DEATH DEAD 0
frame 1 0.166 0 0 0 NONE
frame 2 0.166 0 0 0 NONE
frame 3 0.166 0 0 0 NONE
state DEAD NONE 0
frame 3 0.25 0 0 0 NONE
frame 3 0.25 0 0 0 NONE
i don't know for sure if you have to declare the death and dead states, but i think you do. if you plan on killing your npcs then i don't think you can animate them since a decoration only can have four frames
