UV Unwrapping in Blender 2.59

[eliasfrost]

Actually you don't have to give it a name for it to work in-game. For me, I can add bodies to models without the model having a name, BUT I recommend that you name them just in case you should run into problems. Just to let you know.

The issue here is that you can't grab it? Even though you have assigned the Object -> Grab subtype?
Make sure that the staticphysics box is unchecked in the entity properties in the level editor.