No, you don't need multiple fpe's.
Basically you create a model that is multiple copies of the same model as different objects with different levels of detail, each object should be appened with _LOD1 _LOD2 _LOD3 and so on.
So if you had an object called ball and 2 LODS then you would name them the following:
ball
ball_LOD1
ball_LOD2
You then export the model to .x (making sure ALL objects are selected for export).
Then in the FPE add the line LOD code (optional, for changing distances)
;LOD System
disablebatch = 1
lod1distance = 1000
lod2distance = 1500
The in GameGuru when you test it should automatically switch between the two models depending on the distance set in the FPE
.
Here's a video of a test I made quite a while ago with the LOD system:
Here is Lee's official LOD video from when it was added:
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