@GfxStyler: thnx! Yup, I always release my demos once I've achieved something in particular. Once this level reaches that point I'll upload it. Thnx for the comments!
About texturing: well, I don't know about blender, but texturing is done in a pretty similar way in every 3d package, even in level editors like Radiant. You have to set your UV mapping coordinates for each of your meshes. UV mapping determines how many times a texture will repeat in the UV directions (U=horizontal, V=vertical, or you may also interpret it as XY or XZ coordnates), and what kind of mapping you need according to the mesh you're a ppying your texture to; so when you apply UV mapping coordinates to your mesh you can have: planar, cylindrical, spherical, shrink wrap, box, face and other types of mapping. So I guess it would be a matter of finding this option in blender (which I'm sure it must have). You know I'd help out more or create a tutorial for you, but I can't even make a cube in blender!!!!
A non UV mapped model will show up with all the textures screwed up. There are also external packages specialized on UV mapping models for texturing, like Ultimate unwrap 3d (which is also one of the best 3d model format converter I've seen).
htt://
www.unwrap3d.com
hope it helps
(downloading latest version of blender to get more confused, lol!!!)