I've had a closer look at the materials information and believe it should be formatted like this (just an extract from the riftseekers zone)
Code:
cieling
e_fShininess0
Di_ct_pyrilen_ceiling_c.dds e_TextureDiffuse0
Di_ct_pyrilen_ceiling_8_n.dds e_TextureNormal0
Opaque_MaxCBSG1.fx
wall high
e_fShininess0
Di_ct_pyrilen_wall_high_c.dds e_TextureDiffuse0
Di_ct_pyrilen_wall_8_n.dds e_TextureNormal0
Opaque_MaxCBSG1.fx
red potion
ra_crystowlava01_e.dds e_TextureDiffuse0
ra_crystow_water_n.dds e_TextureNormal0
ra_crystow_water_e.dds e_TextureEnvironment0
e_fFresnelBias
e_fFresnelPower
e_fWaterColor1
e_fWaterColor2
e_fReflectionAmount
e_fReflectionColor
Opaque_MaxWater.fx
silver
e_fShininess0
Di_ct_gelidran_silvermetal.dds e_TextureDiffuse0
Di_ct_gelidran_silvermetal_spec_8_n.dds e_TextureNormal0
Opaque_MaxCBS1.fx
It seems to start with a name and end with an
effect and contain a number of effect parameters start with e_ which may or may not have a parameter
before them in the file. Pretty much what you had except that there seems to be an e_TextureDiffuse0 texture for all of them which I guess will do as a base texture for the material for simple rendereing.
The effects exist as files in the RenderEffects directory on disk. I would guess that they might be encoded directx effects files and the material information in the TER file describes the parameters to them.