Did you follow this (
http://lucasforums.com/showthread.php?t=142290) tutorial? Did you have on-spawn script similar to the one in that thread to make him walk the waypoints? Also, is waypoint named correctly as wp_NPCtag_## (replacing NPCtag for the utc's tag & ## for a 2-digit number such as 01)
If yes to all of the above, then I don't know what the problem would be.