I ran into this a few weeks ago on my server (insert Zebuxoruk plug here). What i found is that setappearance doesn't work with spawn very well. I think it runs the spawn from perl before the size/level/position and all that stuff is put in so it gets skipped. est way I have found to do it is set it up in a signal, and use another NPC via hail or spawn to trigger that signal and use setappearance there. Kind of strage but hope it helps.
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