Hey mate, a material is not going to show with any procedural stuff you have done on it until you do a few things. You can either bake the procedural material to a texture, OR, you can set the GLSL shading ON in the viewport.
To bake the texture -
Select your model, go into edit mode (Tab), and press "U". Then, select "Unwrap Smart Projections". Press The big OK.
With the model selected, make a new 512x512 image in the image viewer/uv mapping window (ALT-N).
Now, with the model still selected and your mouse in the 3D view, press (CTRL-ALT-B) and select the 4th option, Texture.
Click it, and your blender material will bake to the image, and hence the mesh. Make the viewport textured and it should all be there.
ALTERNATIVELY....
You can also set the viewport GLSL on. This is a new feature in the 2.48 release that allows you to have pixel shaders running in the viewport. You will need a video card capable of it.
I dont have the latest version of Blender (???!?) so I don't have the feature, but if you navigate to the "GAME" menu on the top bar, then go down to a menu like Shading or Use Blender materials or something. Its a menu with another menu underneath it with a few options regarding shaders. See which one works through trial and error
Sorry that last bit isn't much help, my net is shaped so I can't get the latest version in a flash!
Hope that helped...
Greenlig
Blender3D - GIMP - WINXP - DBPro