As has been pointed out you cannot convert md2 to b3d with animation. You can export a model animated in Milkshape to either format (which was your original question) but you cannot convert between the file formats. Well, you can go from b3d to md2 but not the other way around.
By the way, the step where the animation is lost is import, not export. Try importing an md2 model and then hit play in Milkshape to see what I mean. Md2 does not store animation in a way which is useful for any purpose other than straight playback in a game engine (among the many reasons b3d is a better file format.)
By the way, the step where the animation is lost is import, not export. Try importing an md2 model and then hit play in Milkshape to see what I mean. Md2 does not store animation in a way which is useful for any purpose other than straight playback in a game engine (among the many reasons b3d is a better file format.)