Texture goes 'blaah'

[Adny]

Nice thanks!
Do you know why this is happening?

Imagine this:

You have a piece of paper flat on your table, effectively using x and z axis (length and width). This piece of paper has a texture on it. Now, imagine you're only capable of viewing it from directly above; if you were to rotate the piece of paper 90 degrees on the y axis, you would be looking at the flat/extremely thin side ( representing depth, which it doesn't have).

This is basically how 2d plane textures work; a texture aligned to world coordinates is not capable of existing on just the y axis, so to compensate, the editor takes a very tiny sliver of the texture (a.k.a the depth of a 2d object, which doesn't really exist), and stretches it over the plane, causing that god-awful visual distortion effect.

I hope I explained that as well as I think I did xD