A sky entity does not work in this manner; it still allows the camera to get close to it and it still may be contacted by other models.
Umm, no. A sky entity does not interact with your level or any objects in it. You define a SKY entity like this:
SKY* test_sky =
{
/* clip distance is 50000 quants */
/* to keep our model IN FRONT of any skybox you have */
/* keep its x, y, z parameters LESS than 50000 quants */
type = "mountains.mdl";
x = 30000;
y = 30000;
z = 0;
/* the sky entity will NOT react with any other objects, and */
/* it will stay exactly 30000x quants and 30000y quants away */
/* from the camera at all times */
}
So, like I said: use a sky entity.