scheherazade: As far as I know, dan and I are doing about 75-25 with me being the 25. I take note of the coordinates of all the stuff (weapons, engines, etc) and hand it over to Dan. According to him, It's saving him hours of work, which is what I'm all about.
As for what I'm modelling in, TopGun gets a cookie. It is indeed 3DSMAX4. As for how I'm making the textures, I'm using Photoshop 6, and simple layer and line drawing techniques. The key is to make the surfaces look worn, and to do that you need to smudge, erase, and blur some parts (most parts, really) of the ships' texture. I have a different technique for each of the different races, simply cause I don't want them to look too alike.
Here's a short animation of the Wayfarer taking off from a large Human colony. This is exactly how it'll look in the game engine. Just click the ship and watch it take off. Heh. Some may note the fancy shadow on the floor. It's not actually a shadow, but a single textured polygon that mnoves, rotates, and grows acording to the ships' position.
http://www.hedfiles.com/VSLaunch.avi (Divx 5.0 1.2 MB)
Enjoy!