What happens if you either remove the picture frame and re-export or try the zone1.scn sample?
WC
P.S. How about posting your .SCN somewhere so I can try it from here?
P.P.S. Here's another thing. All of my textures and all SOE textures I've ever seen are 256x256 pixels. You might want to check the resolution of your custom texture. Maybe the client barfs on textures that are any other size...
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