ok. try this very very simple thing first.
go to the entity properties (by right clicking). You would see the texture field there pointing to some image file. (assume its skeleton.dds)
Now open your PC browser to that folder and check the image resolution of that texture file. (assume its 512 * 512)
Now just open MS paint or something and create a new image file with the same reolution. Make it black (but not pure black!) The RGB should not be 0 0 0!!!! (Even a RGB of 10,10,10 looks black as anything!)
Save it in the texturebank folder (any place inside that folder works!) but make sure you DO NOT replace any existing texture file there.
Now, again, back to the entity properties, and this time point that field to the new image file you created.
Hope it helped.
-- n00b at playing games...and now at making em too :p --