I had 2 files, a .smd and a .dmx, both exported from exactly the same blender file but only the .dmx gave the me two texture slots for the 2 different materials in the inporter, so I don't know if something went wrong when the .smd was exported but its different for me.

Still didn't work. Hat is rigged to bip_head for sure. Also, can't use .smd as my model needs two texxtures and (for transparent glass) .smd files don't support this feature.

I just loaded up my model into TF2, selected all the files and when I went to preview got this,

Compiling TGA: materialsrc\models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2_1_color.tga
- Compilation successful.
Compiling VTF: materials\models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2_1_color.vtf
input file: c:/program files/steam/steamapps/dark_omega27/sourcesdk_content/tf/materialsrc/models/workshop/player/items/heavy/lincoln_preview2/lincoln_preview2_1_color
output directory: c:/program files/steam/steamapps/common/team fortress 2/tf/materials/models\workshop\player\items\heavy\lincoln_preview2
config file c:/program files/steam/steamapps/dark_omega27/sourcesdk_content/tf/materialsrc/models/workshop/player/items/heavy/lincoln_preview2/lincoln_preview2_1_color.txt
SUCCESS: Vtf file created
- Compilation successful.
Compiling VMT: materials\models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2_1.vmt
CTargetVMT::Compile OK! - materials\models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2_1.vmt
Compiling TGA: materialsrc\models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2_color.tga
- Compilation successful.
Compiling VTF: materials\models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2_1_color.vtf
input file: c:/program files/steam/steamapps/dark_omega27/sourcesdk_content/tf/materialsrc/models/workshop/player/items/heavy/lincoln_preview2/lincoln_preview2_1_color
output directory: c:/program files/steam/steamapps/common/team fortress 2/tf/materials/models\workshop\player\items\heavy\lincoln_preview2
config file c:/program files/steam/steamapps/dark_omega27/sourcesdk_content/tf/materialsrc/models/workshop/player/items/heavy/lincoln_preview2/lincoln_preview2_1_color.txt
SUCCESS: c:/program files/steam/steamapps/common/team fortress 2/tf/materials/models\workshop\player\items\heavy\lincoln_preview2/lincoln_preview2_1_color.vtf is up-to-date
- Compilation successful.
Compiling VMT: materials\models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2.vmt
CTargetVMT::Compile OK! - materials\models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2.vmt
Compiling DMX: models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2.dmx
- Compilation successful.
Compiling DMX: models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2_lod1.dmx
- Compilation successful.
Compiling DMX: models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2_lod2.dmx
- Compilation successful.
Compiling QC: models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2.qc
- Compilation successful.
Compiling MDL: models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2.mdl
all paths:c:\program files\steam\steamapps\common\team fortress 2\tf\custom\eve hud\;c:\program files\steam\steamapps\common\team fortress 2\tf\custom\my_custom_stuff\;c:\program files\steam\steamapps\common\team fortress 2\tf\tf2_textures.vpk;c:\program files\steam\steamapps\common\team fortress 2\tf\tf2_sound_vo_english.vpk;c:\program files\steam\steamapps\common\team fortress 2\tf\tf2_sound_misc.vpk;c:\program files\steam\steamapps\common\team fortress 2\tf\tf2_misc.vpk;c:\program files\steam\steamapps\common\team fortress 2\hl2\hl2_textures.vpk;c:\program files\steam\steamapps\common\team fortress 2\hl2\hl2_sound_vo_english.vpk;c:\program files\steam\steamapps\common\team fortress 2\hl2\hl2_sound_misc.vpk;c:\program files\steam\steamapps\common\team fortress 2\hl2\hl2_misc.vpk;c:\program files\steam\steamapps\common\team fortress 2\tf\;c:\program files\steam\steamapps\common\team fortress 2\hl2\;c:\program files\steam\steamapps\common\team fortress 2\tf\download\
qdir: "c:\program files\steam\steamapps\dark_omega27\sourcesdk_content\tf\models\workshop\player\items\heavy\lincoln_preview2\"
gamedir: "c:\program files\steam\steamapps\common\team fortress 2\tf\"
g_path: "c:\program files\steam\steamapps\dark_omega27\sourcesdk_content\tf\models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2.qc"
Building binary model files...
Working on "lincoln_preview2.qc"
DMX Model c:\program files\steam\steamapps\dark_omega27\sourcesdk_content\tf\models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2.dmx
DMX Model c:\program files\steam\steamapps\dark_omega27\sourcesdk_content\tf\models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2_lod1.dmx
DMX Model c:\program files\steam\steamapps\dark_omega27\sourcesdk_content\tf\models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2_lod2.dmx
ERROR: unknown attachment link 'bip_head'
ERROR: Aborted Processing on 'workshop/player/items/heavy/lincoln_preview2/lincoln_preview2.mdl'
CTargetMDL::Compile Failed - c:\program files\steam\steamapps\common\team fortress 2\tf\models\workshop\player\items\heavy\lincoln_preview2\lincoln_preview2.mdl
WARNING: CTarg

Does anyone know what the problem is, I understand it a bip_head not being recognises,

ERROR: unknown attachment link 'bip_head'

But it should be, help.
Thanks

Try here. You might or might not beable to figure it out from this, I found it hard.

Ok

Having troubles.
I've made the model and assigned the whole hat and monocle to material.001 expect the 2 faces of glass which I assigned to material.002.
I then made 2 textures
Main Hat here[www.dropbox.com]
Glass here[www.dropbox.com]
I then did the other things I needed to do (assign bone, make LODs and export).
I then went into TF2 and loaded up the model and the first texture but couldn't find the "additional texture option", also, when loading the first texture it made the glass black on the preview as there is black where here[www.dropbox.com] the UVLayout says the glass is, so I feel like because the first texture is being read for the glass I missed a step to do with the materials in blender. Can you please help?

Ye, I noticed that aswell

Thanks

I went to export my model and did File>Export>Steam Engine (.smd .vat .dmx) but by accident exported it as a .dmx file. Now whenever I do a Steam Engine export it automatically exports it as a .dmx and the screen to pick the name, location and file type doesn't show up, what should I do, thanks.

Thanks, I'll see if I can work it out.