OK, I finally found the answer to the question I asked several times. Morph animations (like facial expression morphs) do NOT transfer via fbx (Daz or Max) to 3dXchange4>iClone4. I assume iClone 4 just ignores them.

So, forget doing lip sync in DazStudio and transfering to iClone through 3dXchange.

If anyone has successfully used Daz characters lip syncing in iClone please correct me!

If I were you, i would not go through 3dexchange,just try going from 3d Max(assuming you're converting a rigged/animated model in 3d Max first then uploading to Iclone4. In my case I don't know if Reallusion recommends a plugin for TrueSpace7.6?

Iclone 4 and 5 rock!