Well it appears alot of peeps have gone in circles here...
3DS format Mesh Deformation is bugged in the format,
it is actually why ALOT of exports don't support it and importers won't read it.
DBpro works fine with mesh deformation, as I tested earlier with my DB Goblin remake (i'll upload him later as i thin everyone will like the lil guy

)
If you're using Milkshape then exporting using the JTExporter will work well, but it is sensitive as if you use skin & bones - it won't allow heirachy and if you use heirachy it doesn't allow mesh deform (a bit like the MD3 format!)
Personally I'd export as MD2 as it is the only format that will load and you can be perfectly sure about...
I'll see about getting up how to export things properly later, as it seems to be a very unsure point for alot of people - have to finish a tutorial for Sin first thou
[b] New interactive driving system... i like my new blue and black steering wheel

[b]