Yes try flipping the Normals. Usually when something does not work for me at all in 3ds, I close the application, start fresh, by that I mean reset all the settings and then import my meshes.
This usually fixes all issues that I had so far hope it helps.
I think the Multi/Sub-Object material is not appropriate for this kind of render. It is for separating materials... each material only applies to a collection of polygons (using material IDs). The materials don't overlap.
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This usually fixes all issues that I had so far hope it helps.
I use Multi/Sub material with 2 VrayMtl one with wire and one normal color and render with Vray