Glitchy Materials

Recently I have been trying to create some materials for this gamemode, however every time I make it into a VTF and put it in GMOD I get a result that looks like this.

http://img51.imageshack.us/img51/5230/glitchs.png

Is it something with the settings I have in VTFEdit? Because other materials that I downloaded work properly in the same situation.

What’s it meant to look like?

I believe that would be a problem with the .vmt