Model appears in ModelEd, not LevelEd

[Damascus]

My modeller has been working on a set of gears to use in my custom story, but we're running into a strange issue. We can get the model to appear in Model Editor with no problems, but when we load it into the Level Editor, all we get is a wireframe and no texture. I've included one of the models in a download if someone wants to take a look at it. Otherwise, neither of us have any idea what the problem is.

And just to head off any questions, we have figured out for sure that PNG works as an excellent substitute to DDS for models, and are already successfully using files of that type in models that are showing up in-game with no problem.

http://www.mediafire.com/?p2bm39jk4iy3315