Well first off, I don't model in MED - though it is definitely possible.
I do my skinning in Ultimate Unwrap 3d which, when unwrapping complex shapes, is a bit easier than MED and then I make the textures in Photoshop.
If you want to continue on with skinning in MED but are confused take a look at the tutorials I made on the subject, you can find them in AU resources and in the Tutorials topic of the forum.