To import the model into the game, you have to use another file format, and a newer version of S3D (v0.8).
So first get the newer version here:
http://www.subsim.com/radioroom/show...71&page=28#550
Then, follow the guidelines I described in the 2nd post in this thread:
http://www.subsim.com/radioroom/showthread.php?t=135177
It may look like alot of work, but once you've done it once (and all settings are correct), it's really easy.
Note that you can still use DAE, but only to export from S3D. It can't import it.