Patience is a virtue my friend!
To add new models for KMOD you have to edit ModelDef.txt, the syntax is simple enough:
0 md2/i_bmana.MD2 idle
1 : idle
2 : idle
3 : idle
4 : idle
5 : idle
6 : idle
7 : idle
8 : idle
In this particular case the first line MUST have an * on it followed by the name of the sprites it will replace as EXACTLY used in the wad file, so it must be all capital letters
The second line is where the model is located on, 0 represents that it's the model definition, if you put anything different it would be to use a single frame from other model, which is not the case.... in this case it's inside a 'md2' subdirectory in the same directory where KMOD.exe is located, then comes the name of the MD2 file, finally the 'idle' keyword is used to describe an object that is not going to move from it's current place, I don't recall why this must be specified thought...
Then comes the frames definition, IIRC, they will be automatically mapped to the sprite frame they represent, again, 'idle' must be specified for inert map things.
OK some more properties available for models:
under the first line of the model definition the following properties can be defined:
(offset: xxx) - Indicates an offset for the model in case it's origin isn't set correctly ingame.
(scale: from 0.1 to 1.0) - scale the model will use.
(height: xx) - Vertical offset for the model's origin.
Other properties for models:
bright - Indicates the model will be fully bright.
shadow1 - Gives 0.3 of transparency.
shadow2 - Gives 0.6 (less) transparency.
brightshadow - Gives 0.8 of transparency and makes it additive (like the projectiles in newer sourceports).
autoscale - Scales the model to the same height of the sprite, I'm not sure, but I think this one had a bug.
spin - Makes model to automatically spin 360 degrees (like items in quake).
movpitch - Makes the model to pitch rotate when launched with vertical speed (for projectiles mostly).
Finally, some more notes on MD2 support, it's limited to a certain number of triangles for models, so some newer models (for example the latest ones for Doomsday) can't be used because they exceed the triangle number. There might be useable ones thought. Second, submodel support was never added to KMOD, so if you want to have things like a transparent sphere with something inside it, it's not possible... and third, the skins MUST be in PCX format, yes, I know, pretty ancient stuff, but that's how things work
Hope this helps you out.