I'm working on Time Rock Gaiden and the emotion setting bug in story creator is fucking KILLING me. If any of you guys work on something, if you want your guy to make funny faces in the scene via the "emotion" setting, stick to text. Adding any form of audio anywhere in the scene will likely cause the emotion setting to go back to default, and there is no way to fix it. Not even exiting without saving and resetting it. Only way I was able to get it back was to completely scrap the entire scene and start from scratch.
This is also why in the Quick Look they noticed that the characters they were using didn't seem to be reflecting the emotion they selected.
EDIT - Someone on the THQ forums said the bug was in WWE 12 as well and was never fixed. Rockin'.