You need to have your model done and textured, then export the dff etc. and then for the COL we need spheres and boxes, so create some spheres and scale them.
when done, open collision IO, select by col mesh the model (you can also select a shadowmesh, it works too) and select all the spheres, set the name and click export.
Then you have something like this, but you have faces and we want boxes, so select the faces and click 'replace by box' its very easy in this model, because its already created by boxes. (note, I think you can also create the box in Max and export with the same way of the spheres)
okay, done with the col and dff, the thing now is to define to object and to place it, its very easy. The IDE works as a normal object, no special flag
Then open the object.dat file (data folder), find a good space (moveable objects, dynamic, breakables, etc) and paste a line, I used this one:
;Name Mass TurnMass AirResistance Elasticity PercSubmerged Uproot CDMult CDEff SpCDR CamAv Expl
--Copy from here
testtable 50.0, 50.0 0.99, 0.05, 50.0, 0.0, 1.0, 0, 0, 1, 0, 0, 0.0, 0.0, 0.0, none
The mass is the size of the object in Kilograms. the turnmass should be the same (didn't do much tests with this), the airresistace defines itself, the other thing I don't know very good. Its good to read the instructions in the top of the file, those helped me a lot.
I hope I didn't forget anything..
Edit: Fixed the IDE thing. You don't need any IDE, thanks Aschratt