f16diy: my best guess: you need new drivers. I can't help much more unless you press "Details" and copy whats in there.
Raz: Well, the reason I don't want to do MD3 importing is that MD3 compresses vertex positions quite a lot, and can result in lots of artifacts especially when you have a mesh with lots of small details. I was planning to add an option to import an obj file as a single frame, so you could just import frame by frame... but I haven't got around to that yet. It is near the top of my list now though.