At this point I know it would be a difficult workflow to go from geometry creation in XSI to WED. But with the new max scene import option that should be coming out soon, I should be able to go. Level Geometry created in XSI, work on texturing in XSI and export Level Geometry back into WED as a MAX scene?

This should be achievable through a Deep Exploration scene conversion.

Does that sound like it will easily work?

Yes, I have XSI. But owning it and understanding it are sometimes two very different things. I'm working on it but man is it huge!