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In the tools menu, click on 'DirectX Mesh Tools'.
Click on W/S to go between wireframe and Solid modes. You can rotate and move the model with mouse click-and-drag actions.
Move the slider to reduce poly count while watching model (you can make the window bigger or smaller).
Click on the little disk image to put the changed model back into MilkShape.
Click on the close window button if you don't want to keep the changes.
<* Wes *>
If you like to say what you think, be sure you know which to do first.