My first product with mm3d:
Texturing is easy to learn but is a kind of "nitting" process. Guess it takes a while to master. At least I haven't been happy with my texturing, hence the grayness.
You basically don't need any kind of "special software" to redesign textures for MD2 models. The textures are just patches of artwork stored in a single file -- programs like MM3D allow you to take each bodypart of you model and wrap the texture-parts around them. The texture coordinates are stored internally and you need not worry about them. Ever.
-Hrafn