When you zoom out on a non-mipmapped model things will start to blur in yellow. To get it to not do this you create mip maps. A mipmap is the same as the original skin only half the size and sharpened. You can make these easy yourself. If you texture name is for example Hi.tga you open it up, make a 50% smaller copy which is sharpened and save it in the same folder as hi_mip1.tga then you make that one smaller and sharper again and repeate the prossess untill you get down on hi_mip4.tga or something. When you export or preview your model with the art tools now you should not notice the yellow bluring anymore and it will look much better at a distance. When you export the art tools add all the mip mapping textures into one blp file with the skin. Since there is no 3rd party program for mipmap creation, skins often end up looking not as good at a distance as the original skin because of lack of mipmapping. More or less all blizzard models uses mipmapping.
And that was today's lesson.