messed up terrain textures

I made my own texture for the terrain the first time last night and I'm having some problems. I put them in the right directory and loaded into Torque. The appear correctly in the selection bar on the right side of the editor, but when applied to the terrain it appears in red, green and blue stripes (like Torque is separting the channels or something). I am using release 1.1.1. Here's a screen:

Any help is appreciated.

-flegmato