Character does not animate

I am game design student at Central Ohio Technical College and our assignmant this quarter is to build a game using Torque and the book 3D Game Programming All In One by Kenneth C. Finney. I am really struggling with the animation of the character. Here is the deal, I can create a character and skeleton, animate it, export both the dts and dsq files with a new .cs file all from milkshape and its all good. all works well, in the demo. Not in our game environment however. The animations somehow get lost. The BOOK says to use Garage Games skeleton, (have you ever looked at the skeleton in milkshape? It looks like someone scribbled all over the page.)which is on the cd, and rig your character to it and all you need to export is the .dts, the game does the rest with the animations. NOT so much. I even found a dts file on the cd, rigged by the author to the garage games skeleton, and it does not even work in the game demo. You guys have any ideas, I really could use some advice. Please.