Okay, I've realized I forgot to tell you about assigning textures in the Milkshape tutorial, so here's a short lesson in that. (Be sure to read the Milkshape tutorial before you read this one, so that you'll be familiar enough with the controls.)

Open your model in Milkshape. Go to the Materials tab and delete all the empty spaces (until the last item in the list is highlighted.)

Now go to the groups tab and select the group(s) you want to assign texture to. In this example, it's the dress.

With this selected, go back to the Materials tab. If there's already a texture listed from the original file, you can rename it, or you can delete it and make a new one. Whichever you do, highlight the material (Serena_Cloth in this example) and then down in the text box delete the name and replace it with the name of your .tga file. Click Rename. Now, see the two buttons next to two others that say None? Click the first one. It will bring up a browse box and you can select your .tga file. (Note: in older versions of Milkshape, for your skin to show on the model, it has to be in the same directory with the model. You'll move your skins to the Materials directory when you're done setting the skin in Milkshape. If you have version 1.5.7 then you should be able to view the textures from the Materials directory.) Click Assign. Your new texture should be showing up on the model. If not, right-click the main screen and choose Textured.

Now depending upon the sort of skin you've made, everything might show up properly, or it might be messed up. Here's how to fix it if it's messed up. Click Control+T to bring up the textures dialogue box. On the pull-down menu to the right are the names of the groups. The ones you have selected will appear as a wireframe laid out on the picture. You can select, move, scale, and rotate to get this wireframe to where you'd like it to be. On the right side (where it says 1.0 in the text box) you can change the magnification of the .tga. Just mess around in here until you get the wireframes set over the right areas, then close the window. When that's done, just go to 3d to sort of "refresh" the model and you can see where the textures are fitting.