Custom texture invisible in game

[Acies]

https://dl.dropbox.com/u/20790433/JonWall.zip

Place the folder in /static_objects. The above material has an AO added to your diffuse, a normal map and a spec map.

To solve you issues I suggest you take a second look at where your .mat files are pointing (to which diffuse) - if it points to an empty folder it's time to redirect.

It's also a matter of how you like to work: I create folders within /static_objects or /entities which I later, upon custom story export, move into my "custom story folder".