Mesh texture question

[Overv]

One more little question. What kind of material do you need to use for meshes? I tried two ways:
[lua]matBlock = CreateMaterial( "BlockMaterial", "VertexLitGeneric",
{
["$basetexture"] = "dev/dev_measuregeneric01b",
}
)
matBlock = Material( "dev/dev_measuregeneric01b" )[/lua]

The first one seems to completely ignore the Z order and produces this:

[img]http://dl.dropbox.com/u/2399384/texturefuckup2.jpg[/img]

The second randomly seems to show different textures through it:

[img]http://dl.dropbox.com/u/2399384/texturefuckup.jpg[/img]

How do I make it show up correctly?