Hey I see you like my catchey title.
I’m using blender 2.47 Apricot Branch
Basically when I make an AO bake and a diffuse texture, while in texture painting mode the texture displays properly in that I have the diffuse image set to Color mixing mode while the AO bake is set to mutiply so you can see the diffuse texture and AO texture just fine with all the proper colors, however if I return to object mode both textures disappear in favor of a monochrome material.
Here are my texture map settings.
Am I doing something wrong or is this a glitch? Has anyone else encountered this at all?