I do all my animations in CFX only. Best and cheap, because of IK animation tool its the best you can go.
Fragmotion too has IK, but I havent been comfortable with it. But is very good for model conversions.
Milkshape is used intermidiately, just to convert model data that can be loaded into CFX.
I attach the bones in Med because its very easy and handy to do it in Med.
Then using Fragmotion, I load the .mdl file and convert it into .ms3d file.
Then open the .ms3d file using Milkshape, save it again as a .ms3d(txt) file.
Now you can import the .ms3d(txt) file into CFX.
All these steps are necessary as its the .ms3d{txt) file only that can correctly import the model into CFX correctly with bones and vertex correctly attached.
If you are serious then I will guide you further. Till then try all I have told you. It is very rewarding if you follow the whole thing. IK in CFX is very easy, and if you are for just trying to see if IK is really good then download CFX and you can test the given example models with it.