Hammer/texture's

I am having trouble with the texture on export
I used this resource for setup
http://www.garagegames.com/index.php?sec=mg&mod=resource&page=view&qid=11473

this error
** Executing...
** Command: E:\Torque\SDK\tools\MAP2DI~1.EXE
** Parameters: e:\DOCUME~1\builder\desktop\source\textrwad\test.map


map2dif - Torque .MAP file converter
Copyright (C) GarageGames.com, Inc.
Program version: 1.0r
Programmers: John Folliard, Dave Moore, and Matthew Fairfax
Built: Sep 8 2006 at 08:51:44


Loading e:\DOCUME~1\builder\desktop\source\textrwad\test.map
Initial texture search path is set to "e:/DOCUME~1/builder/desktop/source/textrwad/"

Successfully opened map file: e:/DOCUME~1/builder/desktop/source/textrwad/test.map
Parsing mapfile...
Unable to load texture 256_WOOD1
done.
Creating BSP...done.
I have my wad in a folder by itself I loaded to texture's into wally and made wad, and used from my own collection scaled at 256x256 and some from the demo, The textures load into hammer fine and able to use them. I did have a question about this part in the resource.

Quote:The wad file is used only by the editor, to load your textures INTO the editor. In order for map2dif_plus to properly export with your textures it needs to source them from somewhere. In order to do this, open your wad file and export ALL the textures in the wad to the directory in which you saved your un-compiled map file. When the map compiles it will automatically source the textures from that directory.

Now that your .dif has the textures sourced, it still needs them locally to call once there loaded into the engine. Export the textures again to your main interiors directory. Now you're ready to go! If you want you can organize your exported files into subdirectories without having to move your textures, but this would only be for organizations sake