Ren's Kryptonite error

[area34]

Ok I've got a problem - I've skoped in Ren's Kryptonite (from the Toybox) to a few meshes, Metallo, a Batman. In Ctool everything looks fine but in game I get the white box with an an X on the kyrptonite part. I'm not sure what the deal is since the krypto isn't a tga or dds.