I went through the instructions, and your test level, I could not see anything diffrent, I even took my modified code out and placed just your code in, still getting the same error. Heres what I got.....

chapter2
WoodenShield
A shield constructed from wooden planks. Not as sturdy as a metal
crafted one. This one looks to be fairly made.
Armor Rating +10
1
0
1.5
50
END
chapter3
Chainmail
Chainmail is a type of armour that consists of small metal rings linked
together in a pattern to form a mesh.
Armor Rating 40
1
0
1.5
150
END

Models are named obj002.mdl, and obj003.mdl

both have skill1 set corasponding thier name.

I can pick the items up, and when i do, and look at the armor catagory.
The text appers right ie item2 - in one box, item 3 in the box lower
but i still get both models images or views in the top box.

I even went back to make sure they were aligned in the same spots to see if it could be due to thier postioning in the mdl editor...

Completly lost on this one...any ideas ?