Torque Export Texture problem

Has anyone successfully exported an object from blender with textures that have been UVmapped and painted? I saw one other thread that mentioned there were problems but did not go into details. I am also posting at garage games.

All of my objects reflect the skybox when I apply textures to them using the UVMappings in blender. I am successfully exporting the UVmappings and painting them. I can even reimport them into Blender. I am creating the .jpg files in the same directory with the blend file and the dts file. I have named EVERYTHING Cube: Cube.jpg, Cube for the object, Cube for the Texture, Cube for the Material.

I tried tweaking different specular and other settings which I have no idea what they do but the Readme suggests that is useless anyway. I understand that the exporter just points to an image that is the same name as the material plus and extension–which extension? does it try both png and jpg in the torque engine or is the exporter specifying? or what? I have tried using png and jpg.

If I dont apply a texture then the objects are white which is correct. But now I want some color.

I was assigning the Material to the Object instead of to the Mesh. After assigning the material to the Mesh it works. (Yes that is in the readme and I had mistakenly thought it said to assign the material to the object before I re-read it.)