Looking at the pictures, animated arms could be as little as moving the controls back and forth, and having the arms react as a inverse kinematic puppet. It's not a particularly... advanced animatronicThere was indeed dialogue as referenced by live audio recordings. I’ve yet to find actual video of the scene pre 1986 so if it was sync audio I don’t know.
All Cronkite era video I’ve seen shows her arm(s) animated. So she did have some movement.