Ok, I have competely lost my touch with the reflective textures.

This is what I did, step by step.

1. I made a simple, unconverted box in Gmax [just for practice].
2. I applied a UVW Wrap modifier.

Prior to applying a texture, I made one by creating a 24-bit bmp file with 512x512. It was saved as My_Texture_t.bmp. The texture is just a simple blue square.

The alpha channel was made [with a black and white color and saved it as My_Texture_t_Alpha.bmp.

I made sure that the texture files are in the proper texture folder [texture folder] of an aircraft container I have selected as a test platform.

3. I then applied My_Texture_t.bmp to the box object in Gmax.
4. I opened DXTBmp and loaded the normal image.
5. I then imported the alpha channel to the normal image.
6. I saved is as My_Texture_t.bmp in DXT3-with-alpha format.
7. I went to the material editor in Gmax and reloaded the texture that was already applied to the object. The object now looked grey in Gmax. I see this as normal in Gmax.
8. I created a clone and renamed both objects as normal [one is tagged as Exterior and the other as Interior].
9. I exported using the Export-Selected-Object feature in the File menu. [I have middleman and mdlcommander installed for better control over the specular surface].
10. In the Makemdl window, I made sure that the Has-Reflect-Map is checked.

I made sure that the the *.mdl file is in the right folder in FS2004 ACOF.

I loaded FS2004 and selected the aircraft that has the exported visual model.

Well, the visual model shows. However, it is in a greyish appearance. WHAT? What the hell happened. I checked to see where I went wrong, but I can't figure out what.

I used that tutorial from www.freeflightdesign.com called "Reflective Textures The Easy Way".

My video card [as listed below] can support the reflective texures of the stock aircraft in FS2004.

Where am I going wrong? I need as soon as possible because I am working going to work on the textures for the F-117 Have Blue project I have started long ago [with the help of others].