We need to get our characters into the engine, but we have never used Max for rigging before so we're kinda flying blind. It seems from my research that we need to use the Skin modifier and edit the envelopes. Again, don't really know how to go about doing that. I've seen Poop's tutorial a while back, I'll have to take a look at that again. Any help would be greatly appreciated!
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If you use biped you create the biped, turn on figure mode position and scale the pieces to fit your character, exit figure mode, apply skin, and start rigging. where biped really shines is in the import/export of animation and the ability to mix the clips together in motion mixer.
Also check out PuppetShop, it has similar features but is much much easier to work with when animating, but is also buggier then Biped and its UI isn't as fluid or as easy to use but I really like it for creating custom non-bipedal characters.
Check out UDN.