So basically I have made my own skin for the servant_grunt enemy in Photoshop CS5, saved it as a .tga, made it a .mat with the material editor and tried to put it onto the grunt in the model editor. Looked good, saved it and then tried putting it into my custom story in the level editor, it appeared to not have my texture on it.
So, I did another skin, this time of a painting, same result, looked fine in the model editor, didn't appear with my skin in the level editor or the model viewer.
I spent quite a lot of time on the skin, so it would be appreciated if someone helped out. Thanks.