How do I go about creating a new material so that I can add my own texture?
If I right click I have the option of adding new material, but then I get the option of searching through my installation folder, so lame man :poly117:
Textures and models have to be in the Game Object folder else CryEngine won't notice them. Also you should use the photoshop plugin or another to create the CE related .tif files. Then simply assign those textures on your material of choice.
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Then hit the file icon with the plus sign in the material window (add new item)
Done !