i don't know but i just checked the blendfile and it might be due to the polycount. way to high. other than that no idea.
We're programmers. Programmers are, in their hearts, architects, and the first thing they want to do when they get to a site is to bulldoze the place flat and build something grand. We're not excited by renovation:tinkering,improving,planting flower beds.
Here it works just fine, the only issue I can see when exporting is that it exports 198 frames, but your animations is only 25 frames long... maybe you know how to fix this.
I have blender 249, get it if you have an older version. Disable the subsurf modifier its not needed and maybe the exporter has problems with it. If you want to see it still as smooth you can click the "set smooth" button in the editing buttons for the object. And then export it as md2, worked for me...