Honestly DashFox, the texture is easy to make. All I have to do is set up lights in blender the way I like, combined with material properties, like natural light emission and reflection. Once I have the UV map set up, I can have blender automatically render a shaded texture for me. You can see in the blender screenshot that I already rendered a texture, but then decided to reorganize the UV map. And as far as shading goes, I adjust it till it looks right to me, I'm not necessarily aiming for any specific game look here.
Yes I know that srb2 doesn't have any kind of lighting or shading for md2's, this is why I decided to use that feature of blender.
Calling it professional is a little much 0_o
Oh, and could you tell me how the MD2's look off color? I aimed more for a brighter sonic than the current 3d games since srb2 is a bright game, and its sonic is bright blue.
Imagine if I could figure out how to use a character WAD as a texture correctly. Then I could render a texture for every frame of animation, and it would look like srb really did have a lighting engine ^_^
In fact, heres an srb2 palette compatible skin for sonic, anyone want to take a stab at making a character wad with it that works correctly?
http://img101.imageshack.us/img101/2171/playpalletelz4.png