How do I load a model? In Wed, under the menue option "Objects\add models", the program defaults to my work directory.
In the object menu there should be a command "load entity", but there is only a command "load prefab".
So how do I make Wed load models from the models directory?

create a script and include the path to your models with

add_folder("Models")
or
"define PRAGMA_PATH "Models"

go in WED to the map properties and include this script is main script and WED will recognize the folder and list it in the model loader.