Getting started:
You need:
3Ds Max
MD2 exporter tools or from the original site
Adobe Photoshop/ GIMP to make/edit textures
First thing you need to do is install the exporter scripts. Go into your plugin folder (mine was C:\3dsmax7\plugins\) and copy the scripts in there. Now fire up 3ds max
Make your 3d model. If you already have one, skip this part. I'll make a simple character to show you.
Start by making a primitive object:
Convert it into editable mesh (right click model> convert to> editable mesh). Go into the modify menu, and select Vertex:
In the fount view panel create half the outline of your character (facing forward) with vertexes, then fill the inside where the extruding bumps will be.
You can also drag an image into the background and use it as a guide. Go into left view and make the froward vertexes stick out.
Next you have to create the polygons. In the editable mesh list in the modify panel, select 'Face'. just like with the create vertex, select create in the edit geometry tab. Join up your vertexes (don't worry if you don't see them). If you don't see a face select it and flip it in the 'surface properties' tab.
Hold down shift and drag it across the screen to copy. In the tools menu on the top of the screen, select mirror. Mirror its X position. select the copy, and in the modify panel again, select face> edit geometry> attach. then add the other mesh.
Animating.Create a biped object around your charater
Then select your character, go into the modify tab, and select skin. add all the biped objects, expand the envelope tab and edit the bones so the align up with your biped character.
create a simple animation (auto key down the bottom, then move the slider along to view animation).
Texturing should be done after you got your mesh exactly right, as you may have to remap it after. This is just a test mesh, so its nothing important.
Add a texture modifier in modify tab> unwrap UVW. push M for materials. add your texture in the diffuse color map. Edit your uv map in the modify tab, and select normal mapping.
Map your character.
After you have your animation, texture, and mesh right you can export it. Select your character, go into the utilities tab> MAX script> (utilities drop down box)> MD2 tag exporter
Select the settings you used in your model (such as animation time, etc) and save the output into your media folder. Modify the source to your helloworld program where is says "..\..\media\sydney.md2" to "..\..\media\your_file.md2"
Wave hello rushed model!
[/img]Edit Oct/11/07: If your model appears inversed, use the export script to save it as a MD3, and then import it back, then export it as a md2. Inversing the normals in 3Dmax screws up the texture map.