Make a lower polygon version of your finished model (the easiest way of doing this without messing up your UVs completely is to delete edgeloops: select an edgeloop > press "delete" > choose "edge loop"). You can also delete faces that aren't seen from far away.

Export this new low-poly model as a .smd file with a different name. If your regular model was called "c_model.smd", then name your new lod something like "c_model_lod1.smd".

Finally, add the following lines to your QC and compile:


Note that the number 10 can be changed. This value represents units per pixel. Basically the larger this number, the further away the model has to be in-game for the default model to swap into the lod version. Read more here.

You can also have multiple lods: Just make various low-polygon versions of your model (each model being lower in polys than the previous), and add more lines to your QC file like such:

Thanks Jumper!

No problem. And to answer your other question: I use Blender, btw (obviously, haha).

Just One more Question...
How do you apply Jiggle bones to your Model?
I did it on your Sample Model but it gave me an error in the
GUIStudioMDL.

Check out this video: http://www.youtube.com/watch?v=JP9ce_ygeSA