Simple to set up, simple results. Please check out SimpleSync Lite at an Asset Store near you.
Demo at Quantum Leap Computing
Interesting DaveA. Waiting to see a phoneme demo.
Personally, I’m playing with the MetaMorph scripts and generating appropriate shapekeys to define the pheonemes.
Blender, Metamorph, Unity4 - practical lipsync demo
cheers, gryff 
Looks pretty nice seems responsive enough, expand on this and it could really be a seller, considering the fact that FaceFX is rather expensive :).
Is your name really Peter Griffin? 
Other than that, what I think made your demo (which was very nice still). Feel slightly unnatural was the mouth of the character opening oddly. Try adjusting that and I think you’re gonna have a really nice result that should be sellable.
Close - Peter Griffith. Funny you should ask, as I was attracted to this thread not only by the subject matter, but also by the Author’s nickname - DaveA. Years ago in my VRML days, I knew a Dave Arendash who made mesh file converters, and I wondered if it was the same person.
I have created 9 phonemes from 3 shape keys - the Preston Blair mouth shapes. Pictures Here
I’m actually spending time watching actors recite the same words - so Hamlet makes a good video source. 
What I am noticing is that the actors mouth and the audio volume have an impact on how the mouth looks, along with other facial characteristics and expressions.
As for “sellable”, Blender is free, as are the Unity3D version and Metamorph scripts I am using. I just want to pass along my experiences and ideas to the Unity community - it may help someone, it may not - a philosophy that I got from those VRML days again
And you are right FaceFX is not cheap - and I believe bone driven (which is another issue).
cheers, gryff