What format is the model in? ASE or LWO?
Never used ASE but If LWO make sure the model or handle material has a smoothing angle of 180% (at lest that is how is done in Modo, the 3D tool I use), if the model has a single material and you don't want the full model to look smooth, then you can create hard edges by cutting and pasting manually (in blender I think is called extracting) the model faces you want flat, hope this makes sense to you.