Help with sphere texturing

So I’m very new to blender. I completed the modeling tutorial on the manual page so I’m familiar with the basics. I’m currently trying to do this tutorial: http://frontiernet.net/~whitfield/vm/hosted/blendering_earth.pdf But I’m having a lot of trouble with the materials. I tried to mimic the two he had in photoshop by creating just hte land (black water) and then another just the water (black land) but it just paints black over whichever one is above it when I use them in blender. The other problem is the wrapping. I can’t get the images to not look distorted. Please help me out. Thanks.