I just checked. Actually, milkshape won't really tell you what's going on concerning vertex counts, and welding them doesn't seem to work like it used to in older versions.
What you should simply do, is select all, go to "groups" and in the "smoothing groups" section go "clear all" - this will actually weld all "virtual" vertexes.
If you did it right, and press ctrl-m, it should look crappy in smooth shaded view - that's what we want! AC doesn't need smoothing groups, all they do is add uneccesary vertexes, but milkshape automatically creates them when you create primitives.
If you own UltimateUnwrap, simply select all and go "3d" -> "Weld model"
What you should simply do, is select all, go to "groups" and in the "smoothing groups" section go "clear all" - this will actually weld all "virtual" vertexes.
If you did it right, and press ctrl-m, it should look crappy in smooth shaded view - that's what we want! AC doesn't need smoothing groups, all they do is add uneccesary vertexes, but milkshape automatically creates them when you create primitives.
If you own UltimateUnwrap, simply select all and go "3d" -> "Weld model"