Yes, I also tried the meshsmooth modifier, smoothing groups and auto smooth, all gave me the same result.Have you tried the smooth modifier in 3ds?
btw, does anyone know how to flip the normals? the models are inside out...(probably asked millions of times)
This is what I did with Lucas to flip the normals and keep the skin (if there's an easier way to do it, I'll be glad to hear it):
Select a polygon or a group (for example the hair).
In the Modify panel, right click on the skin modifier and select cut.
Then right click on the edit mesh and select convert to editable poly.
Using the face selection tool, select all the polygon's faces and click flip.
Convert the poly back into a mesh.
With the faces still selected use AutoSmooth in 45.0 or the smoothing group number 32.
Right click on editable mesh in the Modify panel and select paste instanced.
You have to do it with every polygon or group that the model has.
Good Luck.
Thanks to VILE for helping.