I'm just about out of ideas. Another option is to explain the process you're doing in some test level or a test block. This is what I did:
1. I click on the toolbar icon with a cube and a sparkle on it then choose hollow cube > medium.
2. I position the cube as needed.
3. I apply the default texture to it while the block is still selected.
4. I then click the scope down button to get to the individual blocks that make the hollow cube.
5. I position the camera so that I can see what I'm editting.
6. As per your screenshot, I selected the bottom block. I right-clicked on it and selected "properties".
7. I move the properties window off the side and go to the surfaces tab.
8. Next, I cycle through the surfaces so that the surface I want to edit is highlighted as a half-transparent red color.
9. Finally, I clicked the up and down arrows in the texture scale and played around a little. You should easily notice the change. I then took the screenshot, saved it as BMP then PNG and uploaded it.
The only other idea I have at the moment is to check to see if you have GXLBASE.DLL as the GXL object. If you do, change it so that it uses the one ending in 8A.DLL.