I can report the same problem. I tried what was suggested but it didn't work for me either. I did, however, seem to get something to show up for the player models after changing the extensions. Instead of a model I got a multicolored cube running around, inverted upwards. Maybe the trick would be to try and get the bullets object
not to render? then work from there? I can also report that I have a similar problem in the previous version (2.4 I believe) but a little different. I can see weapons and objects but no player models. I have an ATI x1800xt running on ubuntu 8.04.
If this helps at all, the game savage 2 has a similar problem displaying character models because of a bug with ati shaders. I'm not sure what the nature of the problem is technically but maybe you guys could collaborate with them for a temporary solution.
I'll post screen shots of all these problems in a sec.
edit: well, it changed a little this time. I changed the shotgun .zym and one of the .md3 files to .mdl and ran it. Now in stead of the cubes for player models, the players are still invisible and I get some multicolored pyramids around the map.

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