I am a person who likes to mod games.
Awesome! Finally an update!
You have to decompile the model first. When you decompile, it turns the mdl file into many smd files. Open the smd that is the name of the character or reference to edit the model.
To turn back into mdl, compile the model.
In Fragmotion to decompile/compile go to tools/half-life and it will be there.
To make models I use Fragomotion, but you can also use Milkshape.
Wow! You make awesome models.
This is great! I've been wanting to make something like this for LBZ.