First of all, get everything ready. You need a .3DF of your model imported into Designer 2.
1. First of all, you will need to create a skeleton of bones. You can do this by clicking the "Object" Button at the top of the right tool panel, (you can name it what ever you want, just make sure no two bones have to same name) then dragging it into place, I.E. The neck bones on the neck, the leg bones on the leg. Make sure that the total amount of bones does not exceed 32. Place one bone in the center for all the bones to link to, this will make it easier to tilt the whole model for the death animation.
2. When all bones are created, you must link them. "Tools->Object manager". Select bone name in list and click "Link" button, then click on the one you want to link it to. For example, you should link the foot bone to the ankle bone, then the ankle bone to the knee bone, the knee bone to the hip bone, then the hip bone to the body, etc. Once you are done linking, link all the bones to the center bone.
3. Now it is time to actually link the vertices to the bones. First, Click on "sov" button on right panel to be able to see which vertices are linked to the selected bone. select the bone which you want to apply vertices to first, then click on the "V" tool (vertex selection tool) on right tool panel. Select the vertices you want to link to the selected bone, and then click on the "Owner" tool on right tool panel, then click on the selected bone. Press the Esc key on your keyboard to deselect vertices. The vertices are now linked to the bone. Repeat this step for all bones.
4. Now save the file as a .3DF. Don’t just click save, go on the save as drop down menu, and save as OldFile format, 16-bit texture.