I am quite familiar to it lately.
Blender 2.34 has an included dx8 exporter that should allow to export bones and weights , even. and a dx7 older exporter, too. It's in export dialog.
Only thing is :
-you can't use Bone.001(u can select em all in certain way and rename all easily, and maybe use in advance allways ur same skeleton) typical names... use for example a standard 8 letters without dots kind of names, for bones. Do the same with materials.
-You need to position(touching N key) -yep, you can't animate the move of the root- at 0,0,0 the mesh, same as armature (skeleton) You need to set the same rotation for both, 0,0,0 if I am not wrong.
-After all this, is then when you parent the mesh to the armature as normally. (you need to know first how this all of character animation works in Blender)
-IK is not supported, only FK, though I yet to test if you use it ok, and then just keyframe everybone, so it gets "baked" as fk. It is possible that works.
-you export as directx8 file from file/export menu.
You have also an md2 exporter you can run from text editor, opening the *.py file, and hitting alt p. The md2 exporter is in the link indi passed u above. I tested also the md2 exporter, and seem to work ok. I think there was a limit of 100 frames per animation, but dunno if I read that also have been avoided now...
