I've written a tutorial on how to get a simple prop from XSI into the Source Engine.
This guide uses the free Mod Tool for exporting a model, and properly explains the process of compiling a model and material for Team Fortress 2. But the method can be used for any Source Engine game. I wrote this as a quick reference for myself, but it should be just as helpful for anyone new to HL2 modding. Comments, Corrections, and Cake are welcomed. Thanks.
http://willc3d.com/tutorials/xsi2source.html
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It would be great to see one of these for 3dsmax wunderboy's SMD exporter for 3dsmax.
http://www.wunderboy.org/3dapps.php#max_smd
I used the Mod Tool for this tutorial because it's freely available to everyone, with many advanced features. Only a couple years ago, hobbyist new to the mod community didn't have that. The object used in this tutorial, and the high polygon mesh used to create the normal map, were all created using it. The high poly was possible under polygon limitations because the mesh is simple.
Also, thanks for the comments. I'm in the middle of writing the follow up to this, which will explain using simple bone animations, and triggering them in game.