View entities for FPS weapons isn't the best idea... You'll miss the main thing, lightning on your models...
To make weapon do not pass through the walls just set ZNEAR, and make sure to have camera clip near set to zero.
About seeing model from inside, using view entity will not fix that, the problem is in the alpha channel that models probably has.
Export skin to .PCX in MED, and then import it back (it will make 24bit skin).