I followed Lord Bandu's Tut on texturing in XSI,
it worked fine, but one time when I had hit Alt + 7, went to the edit box, clicked freeze, then I clicked the X at the top of the window...
And acedently closed XSI without exporting or saving or anything.
This was no big deal, because I had a backup version of my model, before I started texturing. (I knew something would go wrong)
So I import it, and start the process.
Unique UV, close pop-up, Ctrl + L, get texture, image... then bam:
"The preset(s) could not be applied to this selection."
only option is "ok", I tried messin around, clearing and reimporting, ECT
To no avail.
If you need more discription or anything, just say so.

