After installing the VMFImport plugin, do the following:

place VMFimport.ini in your local directory that corresponds to the path below:

	C:\users\bill\Softimage\XSI_3.0\Addons\Application\bin\nt-x86

	(if in doubt, search for VMFImport.dll and put it in the same directory as the _latest_ installed version of that)


Then, edit the file to reflect the path of your materialsrc directory, for example:

	TexturePath = u:\hl2\hl2\materialsrc

That's it!