I spent 2 days tearing my hair out, trying to figure out how to import things into the SDK. The SDK's UI is quite alien to me in many ways, but those of you that know me, know that I learn very fast. Search after search was resulting in not understanding (there was one video tutorial that someone did, in which you spend 10 minutes of the tutorial watching him make a sign in Blender 2.5, export it to Max and then export it to CryEngine 3.0....but that last part is less than 20 seconds long

Finally this morning I went over to the CryDev forums and posted my plight. I explained that a few of us are trying to import an Age from Uru into CryEngine and I needed some direction. I lucked out as I got replies immediatly (they are very friendly over there. I even got a PM from someone who loves Myst and Uru, but doesn't know anything about Plasma or Age creation. I pointed him to here and the wiki, but he really likes the idea of converting things over and giving CryEngine a try and was glad someone was going to spend some time on it. Of course one of his first questions to me was if we could put Riven in there.....hahahahahahahahaha. I wish! hehehe. I told him that Riven was all prerendered stuff and we don't have the files to try and create it into a 3D format. Instead someone (someone VERY good) would have to sit down and try to physically recreate all of Riven in a 3D format, heh).
Anyways, I learned some very important things: Unit Scale. CryEngine 1 Unit is 1 Meter, so already I have a problem with scale, but not to worry as this is fixed during the importing. To import, I have to take the meshes from Blender....export them in FBX format so that I can then import them into Max. I have to have Max's unit scale set up to 1 unit = 1 meter, and then when importing the FBX file, allow it to scale the meshes up. So that takes care of the scaling problem.
Each mesh MUST have a material applied to it. Again, no problem as FBX allows this to all be exported from Blender and into Max. This is because while you do create different shaders for your material in CryEngine, it wants imported meshes to have materials already applied to them. And if you have different materials applied to one object (think complex objects, like the KI dispenser. It has like 8 materials applied to it), you have to make sure it's set to Multi/Sub material in Max (again, no problem as it get's imported from Blender that way).
You also have to make sure your UV mapping is all set correctly.
THEN you can use the CryEngine Max plugin to export!
One thing you have to make sure of, and this is actually a good thing. You have to make sure that in the CryEngine Max Exporter that surfaces are physicalized based on the material ID, so for every physicalized material (usually this would be the collision proxy) I need to select the Crytek shader for the 3ds Max material and tick the "Physicalize" option. Otherwise the object will be non-solid in Cryengine 3 - and you can't set this parameter in the Sandbox 3 material editor.
The reason that this is good, is that I found in the Unreal SDK, meshes that are terrains when imported: you fall through. Meshes that are imported have to be "closed meshes" to have collision on them. You can have terrain that has collision, but it has to actually be MADE from scratch in the Unreal SDK, as there is no way to import terrain in to the terrain editor in Unreal.
So chalk one up for CryEngine: I can import terrain meshes and walk around on them just fine! Whew!
Okay, I've already started on this, and for now, I'm doing the Ahnonay Linking room again, as it's small and will be easier and faster to do at first, just so we can see how things go and look. If I'm successful, I then move on to the Gahreesen Exterior, as I already have that half way prepped in Blender anyways. I'll come back in a few days and post my results.
btw - just incase people are confused: you can make stuff from scratch in the CryEngine SDK. The reason I'm having to jump through hoops and import is because I want to take what was already made and get it in there so we can see what we can see.