The stretching is right, but I would rip the middle apart from the upper parts to increase the detail overthere. Ofcourse the bottom and top gets stretched but this technique is mostly for making those katana or just random sword handles where you want to give the roped feeling, that winds upwards.
Anyways, your very much interestingI've been roaming for some 3D people, and especially 3DS max. I haven't been able to find any upon to now =D Hi mate!
