Just to revisit this the problem was the children were not being textured the following shows how this could be fixed
// set display properties
SetVirtualResolution( 1024, 768 ) // doesn't have to match the window
SetOrientationAllowed( 1, 1, 1, 1 ) // allow both portrait and landscape on mobile devices
SetSyncRate( 30, 0 ) // 30fps instead of 60 to save battery
SetScissor( 0,0,0,0 ) // use the maximum available screen space, no black borders
UseNewDefaultFonts( 1 ) // since version 2.0.22 we can use nicer default fonts
#constant KEY_LEFT 37
#constant KEY_UP 38
#constant KEY_RIGHT 39
#constant KEY_DOWN 40
scudObj=LoadObjectWithChildren("H-Scud Launcher-Attack1.3ds")
scudImg=LoadImage("ScudLaun.png")
for i=0 to GetObjectNumChildren(scudObj)
SetObjectImage(GetObjectChildID(scudObj, i), scudImg, 0)
next
PlayObjectAnimation( scudObj, GetObjectAnimationName( 1, 1 ) , 1, -1, 1,1)
do
if GetRawKeyPressed(KEY_LEFT) then RotateObjectLocalY(scudObj,1)
if GetRawKeyPressed(KEY_RIGHT) then RotateObjectLocalY(scudObj,-1)
sync()
loop