Well, never used Milkshader, never heard of it either so it's probably not as good as Lithunwrap.
About UV Mapping.
Each polygon in your mesh is made from 3 vertices. Polygons can share vertices, each vertice has a 2D UV map location.
UV data tends to be on a 0.00 to 1.00 type scale, so the resolution of the texture is not important, using a lower res texture will work perfectly without any need to change the model.
Each vertice holds a 2D X and Y UV position, this is used to texture the individual polygon. If you single out 1 polygon, it would have 3 verts each with a 2D location, so it's like the polygon is drawn onto the texture almost, except the polygon takes the texture depending on these coordinates. Specifying this data manually is out of the question, so we have programs like Lithunwrap that UVmap our meshes for us to make life easier.
The most common and widely used method is plain mapping. This is like taking a screenshot of the mesh at a certain angle, then projecting the UV data so it flattens to the texture. There are a number of different mapping methods, like sphere mapping and cube mapping - it all depends on the mesh, but obviously plain mapping is the one you will use the most. Cylinder mapping is good for characters limbs and heads, it's like wrapping a piece of paper round your leg then drawing a pair of trousers. Sphere mapping is good for planets and sky spheres - the image editing with sphere map textures can be a nightmare though. Box mapping is something I find unnecessary when you plan your model properly and use Planar mapping.
It is a skill that takes a bit of learning, but it's not rocket science once you know how it works. Just don't try and UV map an animated object or anything like that - make your model, texture map it, then animate it and draw the texture map.
A good example of quick modelling would be a gun.
Start with a side view of a gun, then load this into your modeller as a viewport background, then trace around it. Once you get the mesh looking pretty much like the gun, you could Planar map the gun image onto the gun, and that's pretty much it, a complete textured gun in no time.
Van-B

I laugh in the face of fate!