If you make a beautiful puppet, of a fairy for example, with clothing, hair, wings etc. chances are the movements won't be lifelike and the strings will get tangled. I also like to incorporate recycled items into my puppets as much as possible, which can hinder the freedom of movement depending on what I use. I guess the key is finding a balance between freedom of movement and the beauty of the puppet.
Some of the most beautiful puppets I have seen are simple and elegant. The movement can often say more than the detail and features of the puppet. Check out this site for example: http://www.figurentheater-wildevogel.de/
I especially love the Gandalf puppet from the hobbit. They don't seem to be restrained by proportions or details, using a combination of puppets, masks and real actors for a surreal but amazing performance.
Anyway, that gets me round to my latest puppet, a crow. I've just started to paint the head:
I still havn't figured out the actual animation technique. I'll hopefully post some more of my finished puppets in the next few days.