Patsu, don't believe everything you read in magazines, not even Cinefex - it's usually very, very far from the truth for various reasons. The best info usually comes from smaller, more 'insider' websites' reports, and of course the people working on the movie, as it's a small industry after all.
Avatar's facial tech had the following components:
1. A face cam tracking a certain number of markers placed on the most important facial landmarks.
2. An image analysis software that interprets the marker data, using a set of previously recorded reference positions for the most basic elements of facial expressions (it's called the Facial Action Coding System, its components are like outer brow raiser, lip funneler, blink etc). The result is a kind of metadata describing the intensity for each of these ~50-60 Action Units.
The software can be 'trained' as in, if it's interpretation of an expression is wrong, it can memorize the manual corrections and apply them on its own the next time. However it's unable to capture tongue movement or pretty much anything happening inside the mouth, anything that's covered up (by a hand, or Jake's head when kissing Neytiri) and it's still a mechanical system, unable to get the intentions and emotions on its own. Which is why they had up to 10 HD camera operators on the mocap stage who filmed everything from multiple angles to provide additional reference for the animators.
(
Also, the marker data can be first analyzed in real time to directly drive a far more simple rig in Motionbuilder to provide some feedback for the director on the virtual set, but it's not the same as the final, high detail stuff)
3. The actual detailed face rig in Maya, which models the elemental Action Units using blend shapes; also using additional blend shapes to fix the result of combinations of AUs (like smiling and talking at the same time). The face geometry is extremely complex (20-30K quad polygons at least) to allow the actual modeling of facial wrinkles. Up to a few thousand (!) blendshapes are required and they're all created manually, sometimes using various references like photos and scan data.
The general approach is based on the blendshape system for Gollum created by Bay Raitt (because of the more extreme expressions, that character required even more corrective shapes). The main difference is that they had no face mocap for Gollum so all the animation was created by hand, using the FACS system to break down the expressions as an industry first AFAIK.
Here's Neytiri's face:
Expression studies in Zbrush:
http://www.zbrushcentral.com/showthread.php?t=079195
(these are
not the actual highres models used in the movie, but conceptual art from Stan Winston Studios used as reference to create the final versions at Weta)
You can check more about the system here in the feature "Creating the World of Pandora"
http://movies.yahoo.com/movie/1809804784/trailer
When they show Jake's CG face, you can even read the names of the blendshapes on the right side of the Maya GUI.
Also, I kinda like to / have to research this stuff as I've been responsible for our facial rigs for years now and it's all based on a subset of FACS and (when necessary) corrective shapes as well. From what I've gathered, facial mocap is an extremely complex issue and noone has really cracked it yet to work without human interaction...