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Talking Head
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When using talking head, I find that the lip movement is not synchronized with the audio file. Also, the talking duration is also fixed. I am saving the audio file of the talking agent format properties.

In the Action + afterdisplay option defined the method action as Talk. In the On Action End defined the method action as Return to Idle for the object.

Please suggest if it is the limitation of the taliking head object or something wrong with my defining the method.
IMHO you're right. If you want lipsync you end up with other software, f.i. Flash, Toonboom or Moho (now Anime Studio) for producing the whole thing yourself: tedious but tailor made. Using actionscript 3 it is possible to relate the opening of the mouth to the volume of the sound.

There are more, google for 'flash lipsync', you find software specialized in this kind of animation. Some are quite easy to use, some ask a lot of time to build an talking-head animation.
You have do the timing (mouth opening / vowel) yourself for the whole audio.
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