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A "C3" is just a different file extention for a 3DS model, however it is more complex. Anyway, the "C3" is the file that brings the model to your game. The "DDS" is the texture that gives the colour to it basically.
From what I have heard, ACME and forcer hired someone to code some binary thing that allowed them to use the C3 files in any way they wish. However ACME is not the only people in possetion of this.
The DLL file allows you to export some 3D models from 3DS.
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