Would be great if someone could help me out..

Here's a couple a tips that might help....
First of all... Bones animated models are way better than points because the file size is so much smaller. That really helps with frame rate etc...
Then... you also need to use textures that have been optimized. I have found that using .dds files rather than .bmp or .tga etc... makes the file size way smaller and therefore the game runs much smoother...
Therefore... add it all up... use bones animation with .dds textures and your game runs way smoother...
Just my thoughts...

Man, I don't make models myself, I use existing models, and I can't animate.

Hey...
I have a pro version...
Send me one model and I will have a look at it and I will make you LOD versions and let you know my thoughts...

Try any of old vertex models that GS uses (which doesn't have LODs), and then let me know. Thank you.

Hey...
I feel a little un-easy about making LOD models of standard 3DGS models available to you or anyone...
I figure if 3DGS wanted LOD versions available, they would have made them available already.

If you want to experiment, simply create three different models and name them Something_0.mdl, Something_1.mdl, Something_2.mdl and Something_3.mdl
Then add the Something_0.mdl to your game through wed or sed... you will find that at different distances they will automatically change.

The best model should be _0 and the worst/simplest should be _3
It is possable to change the distance where the models switch.
Read the documentation...
Good Luck....

Thank you, for your time mate.