need to know how to paint in blender render

I watched a video on youtube, it showed how to paint in blender render using the active texture feature that supposed make it easy to paint but it doesn’t work on new blender I think. I get that thing from that picture. Need advice thanks! here is a and the blend file. http://pasteall.org/blend/index.php?id=46604


Don’t use a node material to paint

If you’re using blender internal just give it a material, and add a paint slot. No need for the node editor. Switch the viewport render to “texture” or “material”.