Did you apply the image onto the Lambert1 material? If so you should not touch that material.. It's the default material for all new objects. You can just hold right click on the object you want to change materials on, go down to assign new material and then pick a phong or blinn material.
Hey I started a new model, new gun, desert eagle. I made my image plane, put the reference image on it and it's all good to go but I have a problem! When I create a rectangle to start getting some shape made, my reference image is one the rectangle but I didn't set it to be on there?! Like this... How do I get the image…