[MDL ED] First Custom Story!

[capitalisticpig]

I hope this community isn't dead. I just joined, so I'm looking forward to seeing some awesome stuff... at any rate, however, I am building a short custom story to get used to all the different features. However, I'm thinking about creating a custom enemy for the game, but I read a few of the forums and people are talking about .mat? files and texture limits or something that I have no idea about...

Basically what I want to know are the basic steps you use for creating an enemy or NPC... At first I thought it was as simple as creating your character in blender, exporting to a .dae and importing into model editor to add bones, joints and animations. I don't need a full, detailed explanation, just a general overview... thanks in advance!

(Also, starting to learn programming (actually c#) so I figured this would be a good way to get used to scripting and such... so far it seems like it's gonna be a long road, )