I got your blend and I made the texture UV, redoubled it, converted quads to triangles, made the name of the texture have no spaces or capitals, and it works fine.
[Elim, Sean seems to be keeping this kinda secret, I removed the pic and sent it too Sean via PM. Just trying to keep it more of a secret, the way it has been so far. Sorry for editing your post, I know you hate it when I edit one of your posts. -- Arch]
Next time PM me, ok?
Sorry it was under immediate threat of being revealed, I couldn't wait. For future reference, I take immediate action when necessary.