How to Install MD3s:
1. Merge the "mdls" folder with the same folder in the directory for SRB2Kart
2. Open the "mdls.dat" file with NotePad and add the following...

PAB_PIX KDLC/PB_PIX.md3 3.0 0.0
PAB_BIT KDLC/PB_BIT.md3 3.0 0.0

3. Save the modified "mdls.dat" file and you should be set!