
Test object inside trueSpace. Image shows the mesh, a collision
object for use in unreal and a copy object painted to simulate 3dsmax
smoothing groups.
Definition of smoothing groups from GMax help file:
Smoothing groups are numbers assigned to the faces or patches of an
object. Each face or patch can carry any number of smoothing groups up
to the maximum of 32. If two faces or patches share an edge and share
the same smoothing group, they will appear as a smooth surface. If they
don't share the same smoothing group, the edge between them appears as a
corner.
Create smooting groups:
1. Copy the mesh
2. Rename the copy to "smoothingGroups"
3. Use the paint faces tool to define areas that should be smoothed
together. Any combination of materials can be used, but it's
easier to just use plain color materials. The indices of the
materials will become the smoothing group numbers.
Unreal collision objects:
C
ollisions meshes are created by
using special names on extra geometry in the scene.
For UT3 use the following prefixes to create collision objects
UBX_ - box
USP_ - sphere
UCX_ - mesh
For UT2004 and eariler use the following prefixes on the mesh names
MCDBX_ - box
MCDSP_ - sphere
MCDCY_ - cylindar
MCDCX_ - mesh

This image shows the result of exporting a mesh using the Collada file
format. The mesh is good with proper normals but no unreal
collision object. Simple collisions can be added using the unreal
editor.

This image shows the same object exported in ase format with no
smoothingGroup mesh to control smoothing. Unreal ignores the
surface normal data and all surfaces are smooth. Maybe it's
possible to adjust with a normal map applied. Note that the
collision mesh was imported from the ase file.

This same file can be imported to Doom3 and the surface normals will not
be ignored. Doom3 looks at the normals and ignores the smoothing
groups.
Doom3 needs a material file to be created manually.
click this line to see notes on
doom3 modding including material file setup

Ase object with simulated smoothing groups imported to unrealed.
truespace scale 1 meter becomes 10 units in the file
only single mesh objects, no heirarchy