Creating my first model

[Traggey]

Well to start off with that texture looks horribad, I suggest unwraping your model and then creating the texture ontop of the UV.

Your problem is the .jpg file, you need to make sure that it's scaled in the power of two, for example 512 X 512 or 1024 X 1024 pixels. Once that's done, you need to get yourself a .DDS plugin for whichever image editor you're using and export it as a .dds file.