of course it can be be done.

steps:
1. med cannot read jpg textures, about the engine i'm not sure. however, take all your skins and save them as tga, dds or bmp.
2. import you model. whne the dialog box pops up "skinA.jpg", choose the (e.g.) *.tga skin with the same name from the list.
3. go to vertices selection mode, then tools->meshtester->merge to close your mesh, otherwise it will be lit very ugly.
4. in the edit->skin manager, you have to set every alpha value in the "material setup" to 100, by default, it's 0 (fully transparent).
5. save and add to your scene.
the screenshot above shows that it works.