I had to make a fix for this in svn, but here is how it works:
<?xml version="1.0" standalone="yes"?>
<projectile-particle-system>
<texture value="true" luminance="true" path="images/archer_particle.bmp"/>
<model value="true" path="models/wasprocket.g3d">
<cycles value="0.5"/>
</model>
<primitive value="quad"/>
<offset x="0.0" y=".2" z="0.3"/>
<color red="0.3" green="0.3" blue="0.3" alpha=".8" />
<color-no-energy red="0.0" green="0.0" blue="0.0" alpha="0.3" />
<size value="2" />
<size-no-energy value="3.2" />
<speed value="10.0" />
<gravity value="0"/>
<emission-rate value="1" />
<energy-max value="10" />
<energy-var value="2" />
<trajectory type="linear">
<speed value="10"/>
<scale value="1.5"/>
</trajectory>
</projectile-particle-system>
The # of full times to animate the model are set by:
<model value="true" path="models/wasprocket.g3d">
<cycles value="0.5"/>
</model>
a cycle value of 1.0 would mean 1 full animation, 0.5 means 2 full animations
The speed is set the usual way:
<trajectory type="linear">
<speed value="10"/>
</trajectory>
Where this is how fast it will animate and move the particle.