Im not to sure but I think the model need to be impoted to XSI the export as .XSI then converted.
Know that you can use ANY modeling program to create your mesh. Be it 3DSMax, Lightwave, Maya, Blender, etc. etc. However to make it ready for import into sins you must finish it in XSI. This is mainly because of the tangents, and the way XSI assigns materials to the mesh. Which means your modeling program must be able to export into a format XSI can import. .Obj is a good choice. If that fails then Direct X format will work as well. I have had bad luck importing .3ds into XSI. The mesh becomes corrupt, and I don't know why.
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Major Stress
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I also see you have 1 more texture than Sins models do
Material
DiffuseTextureFileName "CapitalPhaseBattleship-cl.dds"
SelfIlluminationTextureFileName "CapitalPhaseBattleship-da.dds"
NormalTextureFileName "CapitalPhaseBattleship-nm.dds"
DisplacementTextureFileName ""
TeamColorTextureFileName ""
Here is the link again 3D Modeling