Here's the best way to do it: Open the .md5mesh in this program called Noesis, then click File>Export and export it as a .DAE. (Don't forget to check "Flip UV's"!!) Then import the .DAE into Blender, and you should be golden! You should also open the .DAE into Notepad and edit the texture paths and file types. That saves a lot of time.
(Noesis is free, by the way.)
(Noesis is free, by the way.)