Is it normal that i like to observe people?

Totally. This is actually normal. I don't have any education in psychology or anything, other than doing a few years of social/cultural psychology at high school, but I know for a fact that this is normal, although you have taken it to a higher level than anyone else I know. Personally, my own father often sits at dinner parties (because he feels uncomfortable in crowds) and just watches how people behave, and how they act, and he's not a sociopath or anything. I even have times when I just sit somewhere and watch people walking around nearby. But (and there's always a but) there's a fine line between pastime and obsession. I watch people every once in a while, but if it's something your doing every day, for hours at a time, unless you happen to actually be a psychologist, then it may actually be an unhealthy obsession, which might even be a result of deeper mental issues, like a feeling of social inadequacy, which leads you to want to learn how others interact so that you can integrate yourself more fully into the society in which you wish to take part.
In short, if you feel that this is taking up a large portion of your time, or you can't stop yourself doing it, then maybe you'd be better off seeking some help, but if you only do it every once in a while because it's interesting, you're probably fine.

I do that too... And it's also one of the reasons why I'm on this site, because I want to read about other people (is that normal? lolol).

^ That's why their question was about observing. It doesn't really include direct interaction... You're missing the point.

You'd be a great psychologist. :)

I do this to, but not out of interest. I'm an animator so it's important that I learn simple things like gait and reactions.

But I dork off about it so I'm awkward. "Hey man did you know you frown when you think? You're so cool!"

You sound like you could work in the entertainment business too. It looks like you don't just study their actions, but wonder about their interests (in media.) You know, you can get paid for studying demographics.

How "they" think, why "they" act...."they".

It seems to me like you're somewhat detached....i would've voted for this as normal if you suggested some kind of interaction with people....but you didn't.

Hmm.

Wow. I could've wrote this. People to me are fascinating, though I'm a misanthrope. When I'm at school is when I feel like my research can take off. I like seeing my fellow peers react to certain actions. I've always been an outsider so I thought might as well find out what makes me "not normal" compared to the student body. It's interesting and I very much like that I'm not the only one. Peace

You sound like dr. lecter from the silence of the lambs.

I find this disturbing. I know there are many people like this so I'm never relaxed in public.