Well, you can select a bunch of polygons and then you can merge them into a new group. so you divide the model into the new group and the another which contains the other polygons. So you could take a human model for instance and then you can create different groups: legs, arms, head, hair, neck, torso, etc.
To skin a group, select it with the group selection tool. Entering a group means, that you have only access to the group polygons, not to any other ones. Than you can select single faces or all. When marked, you can assign with the skin manager one or more materials (but only one per face).
You can assemble the different body parts both in MED in one model or during game initialisation, but this needs one entity per body part. If you have e.g. 5 models which build up your human model and you have a dozen people running around this means that you have 60 entities on the screen. So, it would be faster if you merge them inside one model. If you have seperated animation in mind you could use of course bones animation.
Cheers
Christian