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(-1)

Hey.

As you already acknowledged, FBX support is only in latest devbuilds, as well as OBJ support, for static models only. I never tested both formats since MD3 is fine to me. For a proper downscaling, you need to scale the decoration scale, not the scale in Model Configurator. Need to note that you can go below zero, like 0.5, 0.1, 0.05 and so on.

What tool do you use to produce MD3 Models? I use Maya and Blender mostly, but Maya doesnt seem to have any support for it, and I couldn't find any currently-supported plugins for it in blender

Milkshape 3D or 3Ds Max. 

Someone from our Discord community may have a Blender plugin. I may ask. 

Gotcha, thank you!

https://github.com/neumond/blender-md3

Here.