http://www.geocities.com/mkia1/Torque_Tutorial_1_1.htmlThis helped me understand model animations quite a bit. This works for milkshape.
There are a couple easy steps to making a weapon animate when you hit the "Fire" state image sequence.
1- Make the animation using whatever amount of keyframes (example, the animation in this case goes from the 1st keyframe to the tenth)
2- make a new material (does NOT need to be assigned to any shape, it's an information carrier)
3- name that material:
seq: fire=1-10, fps=30
Note, I used 1-10 as the keyframes but this is just an example. You can also add Cyclic after the comma, followed by another comma to make the animation repeat until the sequence is over. Fps is how fast your animation plays, a higher number will make it play faster.
4- Export the model with animations (usually done automatically unless something somewhere was unchecked)
And there you have it, you will now have a model animating itself during the "Fire" Image State sequence.