Hello and welcome to the forum

,
I use Blender to (with MED for importing/exporting to .fbx or .mdl). When you want to import fbx in MED use the fbx from 2010 option. Also you may want to install this handy free program
http://usa.autodesk.com/adsk/servlet/pc/item?siteID=123112&id=22694909 .
I dont think you can directly work with .mdl files in Blender, but maybe this will work
https://facepunch.com/showthread.php?t=1472353 (though could be Valve's .mdl is different than Gamestudio 3d's one).
ut it is good to know that MED can import obj. So I can make levels with Blender great!
hmmmm.
But how is the quality loss?
, I personally dont see any loss when importing in MED, do note that Blender bone's system will not be imported in MED unless you follow these steps:
tagimbul Offline
Junior Member
Registered: 06/04/10
Posts: 92
Convert to Med With Vertex weights + UV mapping + texture + animation + bones
Out Blender -> fbx binary
Out Blender -> wavefront .obj
in fbx to -> Autodesk converter
out converter -> FBX 2010
import to MED -> for FBX 2010
Export from MED -> Bones & Keyframes ACSII .txt
import to MED -> wavefront .obj
import to MED -> Bones ACSII .txt
import to MED -> add in Frame manager 1 frame, import in Frame manager Keyframes from ACSII .txt
Save as MDL7
As for using Python, I dont think that is possible. On googling I came across this
http://www.opserver.de/ubb7/ubbthreads.php?ubb=showflat&Number=270067&page=all . Aside from that maybe with a wrapper if someone made this? Anyway if you know c than Lite-C is easy to use. I suggest you scan through the online tutorial (see left bar of this site) to get an idea. Lite-C is great for small/mini games or if you want to quickly make a short game/prototype.
Also if you want fancy shaders in Gamestudio 3d use Shade-C EVO (found on this forum).