Game Space uses a milkshape plugin in order to export models to 3dgs...
This alone should inform you, that you can not run away from problems you found with milkshape.
Maybe you want to use blender instead of spending lots of $ for Game Space, which has not a single bug fixed since its release 1.6 in December 2004.
Use the search button to find some stories about gamespace model export...
-- slacer
