I want to add some pics and explanations about skinnning as far I have some experiences.

As Grimber already said:

Add a frame. It is a special frame to deform the model to be copied comfortably onto the skin image.

Then mark a side of the head to rotate it until it is parallel to the (human) face. Same with the other side. There is only one 'row' of pologons left at the backside as you can see on the picture. With 'Edit' --> 'Move Frames...' you must put this 'skinning' frame at the first place, because you cannot create a skinning mesh in the skin editor from another frame 'place'.


Open the skin editor:



In our case we have the single head so we can create an MDL mapping.

Normally we have the whole model: in that case we have ti change the mode to 'face mode', choose 'Options' and --> 'Sync Skin Selection'.
And in the Skin Editor we have to choose Create MD2 mapping.


'View' --> 'Lines' --> 'Wireframe' gives you the chance to see what faces actually are marked. Don't forget to switch to the 'face mode' in the Skin Editor too.

(If you want to export the picture of the mapping, what is nessecary to paint the skin later in a grafik programm, you have to change the 'View' of the 'Lines' from Wireframe to 'Lines'.)

Here the result of our MDL mapping:
Left the backside, right the front. The back shows parts of the ears and other faces of the frontside this has to be modified in the 'skinning frame' to get rid of the seems that you would get exactly at these faces. Repeat marking and creating the mapping




Compare the last two pictures to understand the difference and the similarity.


Later more.