In regards to character creations, it's no different than what you'd do with 3DGS. I wouldn't expect the WME manual to offer any information on art creation. It's purpose is to address engine functions and maybe a quickstart if you're lucky.

If it's 2D, you can draw out your animation frames on paper and scan them in and color them in a paint program (or color them by hand and then scan), or you can create it all in software with a paint program or an animation package. You assemble the individual animation frames into an animated character in the WME editor called SpriteEdit.

For a 3D character, you create it in a modeling application and export to the X format which is the one the WME uses. The key is to find a program that exports to a version of X that the engine can open. There have been some problems with compatibility depending on what you use. There's an entire section in the WME manual that covers 3D characters and WME 3D functions and usage.

All of this, as well as info on other engine functions and editors, is covered in great detail in the WME manual. What you're wanting (I'm guessing) are character creation tutorials. That has nothing to do with a technical manual. You can use Google for that or even search this forum.

A free modeling program is Blender, and there's a free Blender plugin on the WME forum (scripts sections and I believe it is a sticky/pinned thread) that will export your hidden 3D geometry, camera(s), lights, and pathfinding waypoints (for 2.5D games) to a version of 3DS format that the engine can read (hidden geometry and other 3D specific info is also covered in the 3D section of the manual mentioned above). Cinema4D's 3DS export can also be opened by the engine (most model programs' 3DS export don't support all the elements required by WME, namely cameras and lights). A good animation program for 3D models that also has a sprite creator is fragMotion ( http://www.fragmosoft.com/ ). You could export individual frames from a 3D character animation to 2D files and assemble them in SpriteEdit if you were making a 2D game. fragMotion also exports to 3DGS MDL formats, so it can be used with it as well.