Strange markings on coffee cup after applying a texture

I have made a Coffee Cup for my latest work and when i applied a Nestle © logo on my cup, there seemed to be a bit of problem at the cup. The lower part has strange brown marks and the inside also has some sort of scratches. i dont know why this happens. I have UV mapped the textures onto the cup and i use Blender 2.57. I know it is quite vague, but if you see clearly, there are marks below the cup and inside the cup. Link to the file: http://www.4shared.com/file/-kvnwtnS/Milkshake4.html
Image : http://www.4shared.com/photo/-sWmKjTp/Milkshake_Shop_Coffee_Cup.html

Hi,

Seems to be the Solidify modifier that is causing it.
Turn it off and the issue is gone.

Cheers