If i create a model in say any of these, Lightwave3d, XSI, or Autodesk, how do i go about converting them to mdl? Or will WED allow me to import file extensions from any of those 3 in their natural file type?
You will need to export the models from the modelling application to a file format that MED can import (.3ds, .obj, .x, etc.). Once you have exported the model, open MED and go to File >> Import and select the file type and it is done.