UV Unwrapping in Blender 2.59

[Rapture]

I know this is a bad solution, but I re-did the model from scratch and now the UV unwrapping works this time. I've done a really crude texturing (First time, and I just want to get this working before I go back and do it correctly). But when I export the .dae from Blender and put in the Model View. It shows the entire screen black. I went searching through the forums and found this talking about a similiar issue, but I don't understand the

Any mesh must have at least the diffuse channel as a texture, or it will crash your model viewer.

and my ModelView doesn't crash, just shows blackness. I zoomed out, and finnaly found the default dirt ground it gives. But now it shows something extremely odd in the corner. It has a similiar shape the Stone Cup, but its all weird, not solid and flickers strangely. If I turn on the "Rotate" it rotates in a large circle??

I was watching http://cgcookie.com/blender/2011/06/16/c...r-part-02/ to figure out how to UV unwrap, texture. So I tried saving the diffuse as a .tga.

Pictures...

Spoiler below!

So if anyone could explain that weird anomaly please? And how to get this working.