Another small breakthrough... not sure if it really means anything, but might as well update...
I have made a new model, with two textures. The ones mentioned in the code (mtlSkin1 and mtlSkin2). Not sure as to the format of these skins, so I tried .bmp, .tga, and .pcx. These are both just 2 different solid shades of blue. Anyways, I attempted to apply the .fx file through MED, without and coding. When I run the level, my modle is now invisible... So far, the only two effects I have been able to achieve are solid black, and invisible.
However, for a split second, my model loads as normal, with normal skinns and no effects. Then, within a fraction of a second, it disapears. This leads me to believe that the effect is taking place, but the coding of the .fx file is wrong. Any suggestions?