No texture on character

I have a place holder character animated and running about but he has the 'No material' on it instead of its proper texture originally assigned. The texture is in the same folder as the dts model and dsq files so I imagine this is a shader problem.

Here is my material.cs file:

//*******************************************
// psycho base material
//*******************************************

new Material(corrigated2)
{
baseTex[0] = "~\data\shapes\player_psycho\corrigated2";
};



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any ideas?

For some reason my terrain in my test level is also Black, all I did to set this up was copy the terrain_water demo and reneamed the root folder to a more fitting name for my project.

Any help is much appreciated and I know this is a pretty small problem that can be sorted in five minutes.

Cheers.