2-sided textures in TSE

I'm having problems bringing in geometry that has two-sided texture applied to it through max. This worked fine in the original torque but now when I bring it into TSE and apply specular and/or bump materials to it it greys out and acts like it can't light right and displays as a much darker version of the texture. Is this because it doesn't know which way its normal is actually facing due to the two sides and it is basically not able to resolve?