TEXTURE TILING -- Why Doesn't It Work?

Using Tutorial 8 as a reference I'm trying to texture my simple plane object. I've successfully done so through the UV Editor. Because the mapped texture looks stretched I'm trying to tile it across the plane by scaling the UV coordinates to be larger than the image (as shown in Tutorial . When i export and view it within the iphone simulator I see the mapped texture looked completely undecipherable appearing smeared across the entire object. It's as if iphone is getting confused by the UV coordinates being outside the texture image range (normally should be 0 to 1 but after scaling it could be -2.0 to +2.0)

I loaded Tutorial08.blend within blender then exported it. I didn't touch any setting besides fixing the location for the stone_wall.jpg texture. The iphone simulator was used to display the untouched tutorial08.blend export (tutorial08.sio2) and it TOO is showing the same smearing around the edges.

How do i get texture tiling to work? I am using Blender v 2.49 and iphone SDK 3.1 (however I'm using iphone simulator v 2.2.1 DEBUG), SIO2 Exporter v1.4 (.sio2)

Repeat is the default value in Shading -> Texture -> Map Image, if you want to image to be clamped from 0 ~ 1, click the Clip button (or the other way around).