Textures not showing up in blender until rendered?

Hi,

When I used blender on this computer before, textures showed up in the 3d view fine.
At the time, I was using Windows XP and Blender 2.49a.

Blahdey blah blah blah; blah blah blah-blah blah blah blah. (Replaces a 3000-word story explaining why I have Windows 7 and why I’m not using my copy of Ubuntu; a story that is almost as entertaining as counting fringes on a carpet.)

I have my reasons for not using Ubuntu at the moment; please consider that for various reasons I do not have the time to type up I am stuck with Windows 7 even though I hate Windows (They let sunlight in).

Anyway.

I am now using Windows 7 Ultimate & Blender 2.49b.
Textures do not show up in Blender until I click “Render” or start a game in the game engine.
Textures work fine in the game engine and when rendered.
Material view IS set to Textured.

Any ideas?