Diffuse color, correct. I double checked the files uploaded here and I can’t find anything wrong with them. I honestly don’t know what’s causing the problem for you. :/

In Element, there’s an “Auto Normals” checkbox. With that on, I can see the shading and apply the texture. One problem I’m having now though is there is white showing up between the links of the chain and where the chain attaches to the sleigh. Element won’t read the tga or psd for the texture map, so I had to convert to a jpg or png. I may have done something wrong there.

Ah cool. Yeah, .jpg won’t work because it has no alpha channel or transparencies and when you save the .png files you need to make sure the alpha channel is applied to the image first.

Maybe unlit shading is the better term. I have never worked with element but I’m sure it must be possible. Also the texture path might be broken. Try creating a new shader in element, assign the texture to it and apply it to the model. Then see if you can find some sort of unlit shading mode.