Well I totally understood you when you described how to create surface sets so that went fine as you can see, but I think there may be a problem in my model. Here is an image of the same stapler next to each other, one subdivided and one not. The subdivided one seems to have funky lighting on certain surfaces.
Also I didnt really have a scene to put them in to make a little more dramatic lighting because Im still new at this. So instead I put them inside a sphere and the lighting didnt seem to change at all form this version.
That is the default lighting in lightwave. Im not sure if that light at the top there is even turned on.