Confused Materials

I have a simple box with a .jpg material added, exported into Collada. When I insert the item into the map, I get the wrong .jpg file attached to the box, but when I go to the material editor, the correct .jpg file is applied. TO make matters odder, the material applied in the world editor is the texture for the character which is not even in the correct location. There is only a diffuse map material, nothing else. Very simple. Very straightforward.

Here is the collada stanza:

<library_images>
    <image id="TownHouse1.jpg" name="TownHouse1_jpg">
      <init_from>./TownHouse1.jpg</init_from>
    </image>
  </library_images>
  <library_materials>
    <material id="_1_-_Default" name="_1_-_Default">
      <instance_effect url="#_1_-_Default-fx"/>
    </material>
  </library_materials>

And the materials.cs file from the same directory

singleton Material(TownHouse1__1___Default)
{
	diffuseMap[0] = "./TownHouse1";
	mapTo = "_1_-_Default";

	diffuseColor[0] = "1 1 1 1";
	specular[0] = "0.9 0.9 0.9 1";
	specularPower[0] = 0.415939;
	pixelSpecular[0] = false;
	emissive[0] = false;

	doubleSided = false;
	translucent = false;
	translucentBlendOp = "None";
};

Also, I note that the material editor states "this material has unsaved changes" each time you try to save it regardless of whether you've touched the material since the last time you hit save. At any rate, NOTHING I do in the material editor causes the material file to overwrite. It always shows the material from the player.