Cleitan : I say, go ahead and model your swords. Once the mod-tools are ready, I'm sure it'll be easy to set their pivot points and stuff. I expect weapons (except flails and the like which are not supported by the engine), objects, buildings to be straightforward to add in game.
(I also love modelling with Blender. First package I've learned to use.)
Weltonia : Nice models there! I'm not so sure about exporting from 3Ds Max 7, though. And one more thing : things that would eventually need binding to a skeleton (costumes, humans, horses) will be a little more tricky to export I guess.