Yes I suppose it doesn't. I came to believe that you cannot have your model's shading correct if you need to close your mesh. There is an option in med under the edit menu as "create groups".. it seemed to do what i required at first. When you choose some faces that needs to be in the same smoothing group and press the create group button, they are shaded equally - vertex normals are pointing at the same direction. but this again makes your mesh "open".

I tried what you suggested: but the problem is; this issue is not limited to corners that needs to be sharp. even a straight surface defined by 1 polygon )2 triangles) could be broken (shaded wrong) when i import into the med. What would you do in this situation? I mean if you were to go on with open meshes, do you have any idea that if the performance of the game will suffer greatly?

Thanks for the replies by the way, gratly appreciated!