no you got that wrong its just got a plugin for milkshape also plugs for a few other modelling programs i.e maya, 3dmax, (lightray coming hopefully) i believe.
"You start with the “MDK launcher – Creation Tools” which helps you setup your mod from its name to its version and down to a link where one can download it from. Once the mod ground work is setup you then can launch the model editor (Milkshape) and map editor (PA Radiant) that can have specific settings for each of the mods you are creating"