Uthink,
Sorry I meant to put .jpg as the texture name, (it is changed in the original post).
It finds the model and loads it (I can run into it) but I just cannot see it.
I did skip the step of using Entity Workshop to import then export the model as I am having an issue with that. When I try to export the model it gives me an error run time.
Runtime Error 500 - Unknown Image Error at line 749
I am using Vista, and I have given full administrator options to Entity Workshop. Perhaps if I can get it running, it will solve the issue.