importing .3ds models with textures

Hi

I’ve run into this problem, whenever I try to import textured .3ds models, they get imported without the textures.

If i press ALT-Z the models get colored bright purple all over.

Also , if I click on the texture button on the right, there are no textures at all.

What am i doing wrong? How can I import and edit textures along with .3ds models?

Thanks