I finally got it licked.The problem lies not necessarily in MilkShape, but here:
[Page 80 of the m3drf.pdf]
'Every vertex must be assigned to a joint or the export process will fail. The mesh must then be assigned a material, which must be an 8 bit or 24 bit bitmap. Other wise, the texture will not be recognized by the Milkshape export tool and the material will not be added to the BDY file.'
I converted all the bmp files in my export folder to 256 colors(8 bit) and they worked perfectly.
Better yet, it's not even necessary to manually convert them if you have 3dsMax. Just texture your model in max, and export it as an x file (I'm not sure how it will work with a 3ds, but I prefer x). Automatically all the exported textures become 8 bit at 71 dpi. Import your model in MilkShape, and assign the textures to the different groups. When you export it to a bdy, and build your actor, you should be able to view it with ActViewer - textured.
UM - UM - UM - Anotherone bites the dust... UM - UM - UM - Anotherone bites the dust....
