Hiya
I 'just' (maybe 6 or so months ago) switched to Lightwave from XSI (when Autodesk bought them...). I also am rather fond of how Lightwave does some things, and it's modeling is very complete (even if a bit 'old-school-thinking' sometimes).
Anyway, exporting to .fbx, .x, or .dae (collada) and then into MED works...sometimes. I usually go through another program to do my UV'ing; UltimateUnwrap3D. From that I export to either .fbx or .mdl, and then into MED/WED/GED. The only problems I've encountered are orientation differences and sometimes animation via bones. That said, the new .dae import functions of A7 area HUGE leap forward for ease of the art pipeline.
I haven't done much A7 work in the last few months though, but am just about to start up a quick 'prototype' project where it's quick, uh, prototyping will shine.

Here's hoping I don't encounter any new problems.
(PS: If you buy Lightwave now, you will automatically get the new CORE package when it's released, as well as instant beta access...and CORE's native file format is Collada...)