My steps are:

Map > New UV Map
Texture Name: Texture
a tick on Initial Value
Map Type: Atlas
Subpatch Interpolation: Linear
no ticks on move control points (old), Segment by Surface, and Segment by Part
Relative Gap Size: 50%

After that, I export the UV out as .ESP, and edited it in Photoshop, saved it as .TGA 24bits

Then in Surface Editor:

Layer Type: Image Map
Blending Mode: Normal
Layer Opacity: 100%
no tick on Invert Layer
Projection: UV
UVMap: Texture
Image: tt_inf.tga (that's my filename)
Tile: Repeat
tick on Pixel Blending
Mipmap Quality: High
Mipmap Strength: 1

Thanks for wanting to help, Machinery_Frank.

well i use lightwave for all modelling levels and anything else also i have found that too get all the textures right you should ues Uvunwrap3d.

makes for an extra step but everything works great.

check pictures.thedarkprojekt.net for pics of models and levels.

ps some pictures are a little dark had the screen adjusted wrong:)

Thanks for your input overseer, where can i find Uvunwrap3d? It is a plugin right?

it's a modifier just like uvw mapping
this could help
http://www.youtube.com/watch?v=mA_Qaiwwjac