Model colors wash out

I modeled a simple axe for a game. (.dts file format. Using Blender 2.49 to export it. Modeled in Blender 2.5.) My problem is that the model’s colors wash out to an almost shadeless state on the side that is facing the sun. Haven’t got much help on the game forums, so I though of asking here if someone has encountered similar problems in the past.

My model.
http://img64.imageshack.us/img64/4636/blockland00026.png

A model that comes with the game. The difference is very noticeable.
http://img19.imageshack.us/img19/3259/blockland00025.png