Awkwardly enough, I can't seem to get mine working.
I follow your steps and I even compared what I did to one of my friend's mods and I've done exactly the same..
I'll try re-installing HoN anyways, since my floor textures (the regular ones) aren't showing (only black all over the map).
Thought I'd give this a whirl, so looks meh >_> but here's Night Hound looking a tad more..night-ish. Threw in some flavour for his beard and hairy spots, hard to see but there's some blood on his weapons. http://img245.imageshack.us/i/muriehound.jpg/ Thanks for your guide, your lightning zephyr was inspiring.
Is there any way to know where exactly the face ends without 200 trial and error attempts?
Or is there a way to test it "live"? So I don't have to close->open hon every time I do a small change.
You would need some blender knowledge to be able to do both of them easily.
Or you could read Poqs HoN Skinning guide
He explains how to update the skins so that they show up in HoN and no need to close it between.