EnvMap: static - YES, player - NO

I am getting a very odd error.

I have made a vehicle mesh and when i use it as a static mesh it shows the env mapping correctly ( and very pretty btw, Love torque.) but when i use it as a player model (racing demo) it doesn't show the envirmonment mapping.

I have searched through the forums and checked a few things,

emap = true; \\ set in the datablock correctly

and the environmentmapping is set to 1 in the prefs.

any ideas what my issue could be? my car looks quite bland with just a diffuse skin....