Perfectly possible and easy to boot.
- When you go to export a model using DTS Plus exporter, edit the Material in the Material list which you want to make translucent.
- You need to check 2 boxes: Translucent, and then Additive which becomes available after you check Translucent.
- Export as needed and your model will appear perfectly transparent in-game. Voila!
You're probably wondering how to make weapons glow as well, not to fear. This is a feature that can be found again when editing the Material
- Check the Self Illuminating box when editing the material you want to "glow" to have it glow in-game.
Check out the Torque DTS Plus exporter documentation for more details. It's included in the download pack for the dtsPlus exporter (you can google it), and it should be included with later versions of MS3D. It contains a stuffload of explanations about all the features in the exporter.