Just to add some info :
About LWS support: No, not in the near future. But there will be .X support, i think there are some very good exporters from lightwave to .X. MD3 support: Yes, maybe already in next release, but I
Imho the most important and trouble free is directx 8 with animation. (bones and weights)
- dx8 with animation can be exported from LW, there's a plugin, I suppose yet free.
-Hash Animation master has a cheap plugin that is very powerful to export Hash AM --> dx8 with everything.
-In Max, there's already a dx9 version which works as an exporter, and the great Panda software plugin can export very well, not sure if also dx8 animation with bones and weights.
-Character Fx (outstanding tiny/cheap tool for animation) exports dx8 , too.
www.insanesoftware.de
-Ultimate Unwrap, also. (it even also imports well it)
www.unwrap3d.com
-3d canvas exports also dx (I think dx8 , wurely with weights )
www.amabilis.com
-Truespace 6.6 can export dx8 with bones and weights (not sure on this point) if user purchased also the conversion pack 2.1. previous versions of Truespace I think export or import dx7.(not too useful for character animation) Caligari.com
-Milkshape can export dx8 animatiions. No weights as the package do not suport weights (grrrr)
-There's a Maya free plugin that is told to work nicely exporting dx8 animations. Some people talk about total success with that. I think already also dx9.
-3d exploration (Deep Exploration) supports nicely directx 8 conversions and previewing.
www.righthemisphere.com Full version till 30 days, you can save even. Or it did. Also opens md2 and most md3 files.
-ac3d supports it, don't how much does it.
www.ac3d.org
See, the major packages supporting a fluid, organic type of animation. I don't know if bones and weights are too cpu intensive but many today games (unreal2k3 , Jedi, etc) are using bones and weights.
Many packages also export as dx7 static object.