diff --git a/source/core/states.cpp b/source/core/states.cpp
index 1f5a9e819..c43786936 100644
--- a/source/core/states.cpp
+++ b/source/core/states.cpp
@@ -41,6 +41,7 @@
 #include "templates.h"
 #include "states.h"
 #include "texturemanager.h"
+#include "codegen.h"
 
 
 // stores indices for symbolic state labels for some old-style DECORATE functions.
@@ -699,7 +700,7 @@ void FStateDefinitions::RetargetStatePointers (intptr_t count, const char *targe
 			}
 			else
 			{
-				statelist[i].State = (FState *)copystring (target);
+				statelist[i].State = (FState *)FxAlloc.Strdup(target);
 				statelist[i].DefineFlags = SDF_LABEL;
 			}
 		}
@@ -800,7 +801,6 @@ FState *FStateDefinitions::ResolveGotoLabel (PClassActor *mytype, char *name)
 	{
 		Printf (TEXTCOLOR_RED "Attempt to get invalid state %s from actor %s.\n", label, type->TypeName.GetChars());
 	}
-	delete[] namestart;		// free the allocated string buffer
 	return state;
 }
 
@@ -864,7 +864,7 @@ bool FStateDefinitions::SetGotoLabel(const char *string)
 	// copy the text - this must be resolved later!
 	if (laststate != nullptr)
 	{ // Following a state definition: Modify it.
-		laststate->NextState = (FState*)copystring(string);	
+		laststate->NextState = (FState*)FxAlloc.Strdup(string);
 		laststate->DefineFlags = SDF_LABEL;
 		laststatebeforelabel = nullptr;
 		return true;
@@ -874,7 +874,7 @@ bool FStateDefinitions::SetGotoLabel(const char *string)
 		RetargetStates (lastlabel+1, string);
 		if (laststatebeforelabel != nullptr)
 		{
-			laststatebeforelabel->NextState = (FState*)copystring(string);	
+			laststatebeforelabel->NextState = (FState*)FxAlloc.Strdup(string);
 			laststatebeforelabel->DefineFlags = SDF_LABEL;
 			laststatebeforelabel = nullptr;
 		}
diff --git a/source/core/states.h b/source/core/states.h
index e52905dd5..88f510ca6 100644
--- a/source/core/states.h
+++ b/source/core/states.h
@@ -79,6 +79,10 @@ enum EStateFlags
 {
 	STF_TICADJUST = 1,
 	STF_FULLBRIGHT = 4,	// State is fullbright
+	STF_SPRITESEQMASK = 24,
+	STF_SPRITESEQNAME = 8,
+	STF_SPRITESEQINDEX = 16,
+	STF_SPRITESEQOFFSET = 24,
 };
 
 enum EStateType : int // this must ensure proper alignment.
@@ -161,6 +165,7 @@ struct FDefiningState
 	VMFunction* EnterFunc;  // called when entering the state.
 	VMFunction* TickFunc;   // called when ticking the state.
 	VMFunction* MoveFunc;   // called when moving the actor
+	FScriptPosition scriptpos;
 
 	// these are only here so we can use this struct directly in the first stage of transitioning the states in Blood.
 	FDefiningState* NextState;
diff --git a/source/core/zcc_compile_raze.cpp b/source/core/zcc_compile_raze.cpp
index fe2de0fcc..9d14ef772 100644
--- a/source/core/zcc_compile_raze.cpp
+++ b/source/core/zcc_compile_raze.cpp
@@ -1025,6 +1025,28 @@ void ZCCRazeCompiler::CompileStates()
 
 		int numframes = 0;
 
+		// first set up the AI states so that regular states can 'goto' to them.
+		for (auto& defstate : static_cast<PClassActor*>(c->ClassType())->ActorInfo()->AIStates)
+		{
+			statedef.AddStateLabel(defstate.Label.GetChars());
+
+			FState state;
+			memset(&state, 0, sizeof(state));
+			state.UseFlags = SUF_ACTOR;	// AI states are only for actors and nothing else.;
+			state.sprite = defstate.sprite & 0xfffffff;
+			if (defstate.sprite & 0x10000000) state.StateFlags = STF_SPRITESEQINDEX;
+			else if (defstate.sprite & 0x20000000) state.StateFlags = STF_SPRITESEQOFFSET;
+			else state.StateFlags = STF_SPRITESEQNAME;
+			state.Tics = defstate.Tics;
+			//state.? = defstate.Type; // no idea if we will need this.
+			state.ActionFunc = defstate.ActionFunc;
+			state.MoveFunc = defstate.MoveFunc;
+			state.TickFunc = defstate.TickFunc;
+			state.EnterFunc = defstate.EnterFunc;
+			statedef.AddStates(&state, "A", defstate.scriptpos);
+			statedef.SetGotoLabel(defstate.NextStaten.GetChars());
+		}
+
 		for (auto s : c->States)
 		{
 			int flags;
diff --git a/source/games/blood/src/blood.cpp b/source/games/blood/src/blood.cpp
index 2aaa991e6..ed3621fd5 100644
--- a/source/games/blood/src/blood.cpp
+++ b/source/games/blood/src/blood.cpp
@@ -818,6 +818,7 @@ DEFINE_PROPERTY(aistate, SSIIGGGGs, CoreActor)
 	if (*seq == 0) state.sprite = 0;
 	else if (*seq == '#') state.sprite = (int)strtoull(seq + 1, &endp, 10) | 0x10000000;
 	else if (*seq == '+') state.sprite = (int)strtoull(seq + 1, &endp, 10) | 0x20000000;
+	else state.sprite = FName(seq).GetIndex();
 
 	state.Label = label;
 	state.Type = type;