Tutorial #3 - DIFFUSE COLOR not working

I'm on TUTORIAL #3 with Blender v 2.49. I followed the instructions within the video but for the life of me I just cant get the diffuse material color to show up with the multiple textures. Vertex Painting works fine though. I left my Texture Blend Mode to MIX (default) and the Map To value is COL (default).

Perhaps something was not stated in the video tutorial that should have been set?

Thanks

Make sure that you do not mix the diffuse color + the vertex color, its one OR the other not both... vertex color will always win

Cheers,