Get the DTS converter for blender. Import your model, Watch this videohttp://cgcookie.com/blender/cgc-courses/blender-basics-introduction-for-beginners/Watch this videohttp://cgcookie.com/blender/2011/12/12/blender-introduction-to-character-rigging/If you can do all that we can talk about animation.
Use 2.49b to export
Where will I get that? Also, will it change my current up-to-date version of blender?