For the time being, until I get completely comfortable with the entire interface and start getting everything to show up correctly, I'm keeping it simple and all in the same directory.
you can grab a copy of the infernal1 .scn and .s3d files, along with the custom texture file I used (you have all the other ones).
http://h37.bounceme.net/eqemu/infernal1.zip
It seems that removing the pictureframe had no effect, it just removed the geometry for the box that housed the pictureframe texture.. but everything else is still looking wrong.