Those files don't need to be converted to BMD. If you find a file in the normal structure of the PAK that is XML and you don't have a matching BMD already, then you don't have to do anything but modify the XML.

Did you follow this for basic character mechanics?
http://psteamcommunity.yuanyoumao.com/groups/stateofdecaymodding/discussions/0/864980277909273594/

Hmm I didn't see that post. I was under the impression that editing the .xml files in stateofdecay/game/libs/calss3.1/rts/characters.xml would change these. I'm downloading the CryEngine SDK now so that'll take a while. I'll follow that guide though, thanks for the help!

Course mate :) I need to update that how-to, honestly, I just seem to always be doing something else. Feel free to ask if you need further assistance or if you struggle with a piece in there please let me know so I can make it more clear. I'll also point out that i post most of my stuff on the Undead Labs forums rather than here.

Good luck to you - can't wait to see what you have planned :)

I'll be sure to keep it in mind. And I believe I've actually looked into a few things you've put on the forums. I usually am there but since they are down I figured I'd ask on here.

Okay so at the start of the guide it says to follow a method of unpacking the files that's listed on the forums. The forums are down so I can't follow the link, what is the method it was going to explain?

I saw that coming but I felt bad stealing thunder, guess I should have hosted anyway, haha. Well, I guess in fairness they were posting someone else's file themselves, it seemed.

Anyway- get the pak extractor here, I'll host it on my mod's BitBucket:
https://bitbucket.org/Eocryphops/fortitude-state-of-decay-base-stabilization/downloads/Extraction_Method.zip

Extract that - as seems easiest for me - into your game folder.

Then you open quickbms_4gb_files.exe,
Target zip2.bms when it asks (this is the script that tells it how to handle decompressing the file, where to put the folders, and how to further build the files into them)
Then the pak - in your case that's characters,
Then tell it to unload it in the game folder.

It'll build the folder "Characters" and that's where you'll get all your stuff. Good?

Sounds good I'll give it a shot later today! Thanks again for the help!

Gave it a try and got everything downloaded. If I plan on just swapping parts from the characters onto eachother do I need any phototshop programs? I got Gimp downloaded just in case. Overall though I think I understand most of what is going on but references to different files like the cdf to mtl and changing of names to things like tif sort of throw me off. I'll keep looking at it and experimenting to figure it out eventually!

Just swapping 'em - nope you don't. The raw xml is the basic gateway to getting it done, which is brilliant and simple for dev and modder alike :)

It should be noted that these are generated by the engine as well, so you can actually pop hair models onto characters via the character editor in the CryEngine SDK, though they don't immediately have materials.

Do that by clicking the little person in the top menus and then you'll have the list of default parts there in the middle on the left, click hair, then on the right you can change the file it points to and choose from the hair files that are in the UL folders within the character folder.

Ok so I'm pretty sure I understand how to change around stuff on characters but I have to ask, with breakdown where would I find the hero characters' main files? I see that some of them like Erik and Pastor Will are under Story Characters in the breakdown files but the others I was considering fiddling with like Joel Macon (the Biker) aren't there.