To explain a bit clearer.
I scaled and mapped the gun model in 3D Max.. I used the MD2/TAG exporter script that comes with the game.
In 3D Max the gun is textures with the xaw95.jpg...
I convert the gun to md2 - gun is read, no texture. (all Md2 export options are checked except for unified bounding box..seems to mess up the model)
You mentioned skins.. I tried convering again with the texture path put into the skins box..still red
EDIT: Nevermind, just figured it out!