You make your fist object call it something_LOD0
Duplicate that object and reduce the polys about 50%, Name that object something_LOD1
Duplicate that object and reduce to something that looks like the object from far away, getting rid of small hidden meshes or anything inside it. Name that object something_LOD2
The naming is important only for the _LOD part.
Now in Blender, have all 3 object on and select them. Export them as one object being the name you want the whole mesh to have.
Set up an FPE file like this, replacing your info of course.
;header
desc = BoxCarQS2 4K
;visualinfo
textured = BoxCar_QS2_D.dds
effect = effectbank\reloaded\entity_basic.fx
castshadow = 0
;orientation
model = BoxCarQS2.X
offx = 0
offy = 0
offz = 0
rotx = 0
roty = 0
rotz = 0
defaultstatic = 1
materialindex = 3
collisionmode = 1
;LOD System
disablebatch = 1
lod1distance = 1000
lod2distance = 1500
;statistics
strength = 25
explodable = 0
debrisshape = 1
;ai
;aiinit = appear.lua
aimain = default.lua
;aidestroy = disappear.lua
;spawn
spawnmax = 0
spawndelay = 0
spawnqty = 0
See if this will get you thru it.
Intel(R) Core(TM)2 Quad CPU Q6600 @ 2.40GHz, 2400 Mhz, 4 Core(s), 4 Logical Processor(s), 8gb RAM, Nvidia gtx660, Windows 7 Pro 64bit