Archer Mecanim Animation - Not lining up correctly when movement is applied

Hi All,

Have an issue with mecanim and animations. to make it easy, I recorded and posted to Youtube here: https://www.youtube.com/watch?v=yuPWLhM7YPw the actual problem is shown @44seconds

Basically the archer mask does not line up with the archer aiming pivot, and cannot seem to work this problem out even after trying quite a few things. Most of the setup I believe I show in the video, and the script responsible for movement and aiming is:

 using UnityEngine;
 using System.Collections;
 
 /// <summary>
 /// Player animations.
 /// This script is attached to the Player. It controls the players animations.
 /// 
 /// This script access the ArrowAimingRayAnimation Script. It updates the boolean aimingBeam.
 /// </summary>
 
 public class PlayerAnimations : MonoBehaviour {
 
     //Variables Start
     Animator anim;
     public float speed = 6.0f;
     public float gravity = 20.0F;
     private Vector3 moveDirection = Vector3.zero;
     private CharacterController controller;
     private ArrowAimingRayAnimation ArrowAimScript;
     //Variables End
 
 //    public float headingAngle=0.0f;
     //Variables End
 
     // Use this for initialization
     void Start () 
     {
         if(networkView.isMine == true)
         { 
             anim = GetComponentInChildren<Animator>();
             controller = GetComponent<CharacterController>();
             ArrowAimScript = GetComponentInChildren<ArrowAimingRayAnimation>();
         }
         else
         { 
             enabled = false;
         }    
     }
     
     // Update is called once per frame
     void Update () 
     {
 
 
         // this gives you more control over the rotation around the look axis if needed
         var direction = new Vector3(Input.GetAxis ("Horizontal Right Stick"), 0, -Input.GetAxis ("Vertical Right Stick") );
         var rotation = Quaternion.LookRotation(direction, Vector3.up);
         if(direction.magnitude > 0.3f)
             transform.rotation = rotation;
 
 //        Debug.Log (rotation.eulerAngles.y);
         float v = Input.GetAxis ("Vertical");
         float h = Input.GetAxis ("Horizontal");
 
 
         //Check if there is movement input. If input exists then run code to move the player.
         if (h!=0 || v!=0)
         {
             //This controls the movement of the player
             if (controller.isGrounded) 
             {
                 // We are grounded, so recalculate move direction directly from axes
                 moveDirection = new Vector3(h, 0, v);
                 moveDirection *= speed;
             }
 
 
             // Move the controller
             moveDirection.y -= gravity * Time.deltaTime;
             controller.Move(moveDirection * Time.deltaTime);
 
             // Get a copy of your forward vector
             Vector3 forward = transform.forward;
             // Zero out the y component of your forward vector to only get the direction in the X,Z plane
             forward.y = 0;
             float headingAngle = Quaternion.LookRotation(forward).eulerAngles.y;
             var tempMoveDirection = Quaternion.LookRotation(moveDirection,Vector3.forward).eulerAngles.y;
             anim.SetFloat("direction", -1*(headingAngle - tempMoveDirection));
             anim.SetBool("movementInput", true);
         }
         else
         {
             anim.SetBool("movementInput",false);
         }
 
         //Checks to see if About to shoot. (Pulling Right Trigger) 
         if (Input.GetAxis ("FireWeapon") < -0.1f)
         {
             anim.SetBool("aiming", true);
             ArrowAimScript.aimingBeam = true;
         } 
         else 
         {
             anim.SetBool("aiming",false);
             ArrowAimScript.aimingBeam = false;
         }
         
 
     }
 }
 
 

Any help would be grateful for this one as I am losing hair over this issue and all out of ideas.