MultiRes not working with example player model

I am trying to export my character model with LOD, and I am running into a problem I can't seem to figure out. I have searched the forums, and although there is alot of good info on the topic of MultiRes, I could find the solution to my problem.

I am able to export the model, but all of the LOD's are exactly the same. I get the same problem when I use the example player from :

www.garagegames.com/docs/torque.sdk/tools/max2dts/section1.html#filepack

The dump file shows:

Optimizing skin mesh "bodymesh" detail level 20.
4851 verts before joining verts
1429 verts after joining verts
1617 faces before stripping
Using quick and dirty stripping method.
286 strips with average length 8.66 (range 3 to 75) and 288 reversals
Results in 1788 cache misses

Optimizing skin mesh "bodymesh" detail level 80.
4851 verts before joining verts
1429 verts after joining verts
1617 faces before stripping
Using quick and dirty stripping method.
286 strips with average length 8.66 (range 3 to 75) and 288 reversals
Results in 1788 cache misses


As you can see, the mesh isn't being altered in the different detail levels.
Any ideas? Has anyone successfully gotten the example player to export under 3DS 5.1? I have verified that I am using a 5.1 max2dts exporter, as well.