Lods using milkshape
Make a model and duplicate it. One for 1st and one for 3rd person.
Make sure that there is no groups with the same name. (Also a number in the name of a group defines the lod so avoid them cause they might forget things up)
LOD1 shows only in 1st person and LOD0 in 3rd
You can edit the lods in the export menu
I'm pretty sure you can edit the lod values by just naming the groups with either 0 or 1 in the name, but i might be wrong so just to be safe use the export menu.