I've been working on the very same pack last night, ironically.
Quote: " I am running into one problem, when ever the character gets close to the player it freezes until you back away?"
This is the same case with some stock zombies even. The slow walking ones. I found messing around with the damage frame start and end can get it to sometimes work. It seems to have trouble detecting the end of a damage frame cycle and thats what causes it to freeze and not attack.
Can you include one of your FPE files as well, so I can see if there is any issues there too?
Correct me if I'm wrong but I noticed this part in your script:
attackstart[e]=473
attackend[e]=536
damageframestart[e]=503
damageframeend[e]=512
I believe the damageframestart and end should be within the range of your overall attack animation. Try setting your damageframe start and end to 480 and 530 and let me know if anything changes. I believe the damgeframe start and end is the animation at which actual damage is inflicted during the attack sequence.
I've modified your script a bit in the areas of damageframes. Let me know if it works.
i7 -2600 CPU @ 3.40GHz - Windows 7 - 8GB RAM - Nivida GeForce 420 GT