I know I should look, and have looked, but is there any free tools which I can use to convert the md2 format to .x or ms3d format. If not is there any specific way of picking a position say a hand from the md2 format??
MD2 model format doesn't use skeletal animation. It uses key frames interpolation. So you can get only static geometry exporting to ms3d. But it means exactly the same as importing md2 in milkshape editor. lol
You can only use Milkshape3d editor to create an animated md2 from animated ms3d.