FPSDemo not working properly on 360

Hello

When I build and deploy the FPS demo it doesn't work properly on the 360. I get the menu, pick Terrain and run that. The terrain has black artifacts and large patches vanish as well as the actual texturing all being wrong. This only happens when textures are on. If they're off (by pressing Y) it all looks fine (apart from only being rendered in flat colour). If I hit X to change to a chequered pattern it crashes with an...

Additional information: The operation was aborted. You may not modify a resource that has been set on a device, or after it has been used within a tiling bracket.

If I create a new 3d project and run that I get the same terrain effect.

Anything other than Terrain causes the following (hefty) crash...

"An unhandled exception of type 'System.Reflection.TargetInvocationException' occurred in mscorlib.dll"

error. The inner exception is...

{System.UnauthorizedAccessException: UnauthorizedAccessException
at System.IO.__Error.WinIOError(Int32 errorCode, String str)
at System.IO.FileStream..ctor(String path, FileMode mode, FileAccess access, FileShare share, Int32 bufferSize, Boolean useAsync, String msgPath)
at System.IO.FileStream..ctor(String path, FileMode mode)
at GarageGames.Torque.T3D.T3DTSRenderComponent.set_ShapeName(String value)
at System.Reflection.RuntimeMethodInfo.InternalInvoke(RuntimeMethodInfo rtmi, Object obj, BindingFlags invokeAttr, Binder binder, Object parameters, CultureInfo culture, Boolean isBinderDefault, Assembly caller, Boolean verifyAccess, StackCrawlMark& stackMark)
at System.Reflection.RuntimeMethodInfo.InternalInvoke(Object obj, BindingFlags invokeAttr, Binder binder, Object[] parameters, CultureInfo culture, Boolean verifyAccess, StackCrawlMark& stackMark)
at System.Reflection.RuntimeMethodInfo.Invoke(Object obj, BindingFlags invokeAttr, Binder binder, Object[] parameters, CultureInfo culture)
at System.Reflection.MethodBase.Invoke(Object obj, Object[] parameters)
at System.Reflection.RuntimePropertyInfo.SetValue(Object obj, Object value, Object[] index)
at GarageGames.Torque.Util.PropertyWrapper.SetValue(Object obj, Object value)
at GarageGames.Torque.Core.Xml.TorqueXmlDeserializer._SetFieldOrProperty(IFieldOrProperty fieldOrProperty, XmlNode element, Object& o)
at GarageGames.Torque.Core.Xml.TorqueXmlDeserializer._Recurse(XmlNode element, Object& o, TypeInfo ti)
at GarageGames.Torque.Core.Xml.TorqueXmlDeserializer._RecurseList(XmlNode element, DeserializedList& list, TypeInfo ti)
at GarageGames.Torque.Core.Xml.TorqueXmlDeserializer._SetFieldOrProperty(IFieldOrProperty fieldOrProperty, XmlNode element, Object& o)
at GarageGames.Torque.Core.Xml.TorqueXmlDeserializer._Recurse(XmlNode element, Object& o, TypeInfo ti)
at GarageGames.Torque.Core.Xml.TorqueXmlDeserializer._RecurseList(XmlNode element, DeserializedList& list, TypeInfo ti)
at GarageGames.Torque.Core.Xml.TorqueXmlDeserializer._SetFieldOrProperty(IFieldOrProperty fieldOrProperty, XmlNode element, Object& o)
at GarageGames.Torque.Core.Xml.TorqueXmlDeserializer._Recurse(XmlNode element, Object& o, TypeInfo ti)
at GarageGames.Torque.Core.Xml.TorqueXmlDeserializer.Process(String levelFile, Object target)
at GarageGames.Torque.Core.Xml.TorqueSceneData.Load(String filename, List'1 extraAssemblies)
at GarageGames.Torque.Core.Xml.TorqueSceneData.Load(String filename)
at GarageGames.Torque.GameUtil.SceneLoader.Load(String sceneFileName)
at StarterGame.GameManager.StartGame(SceneLoader loader, String level)
at StarterGame.FPSGameManager.StartGame(SceneLoader loader, String level)
at StarterGame.Game.LoadPhysicsDemo()
at StarterGame.GameMenu.SELECT()
at GarageGames.Torque.Sim.InputMap.ProcessInput(InputEventData data)



Any ideas? I was hoping on using Torque for a DBP entry...