The way I make items and such is make them in wings 3d (uvmapping+model) and then texture them using lithunwrap. Maybe try that, I found doing it that way is way much faster, you have to have your model done then get the uvmap set up in wings 3d then export it then place it over the texture you have made. The last bit i do for lithunwrap.
Here I did this, took me a while so be appreciative. Images may look a bit lanky but its just cause of the way moddb displays it. This tutorial I did is mirrored from the taleworlds forum but it wasnt moved to the tutorial section so Ill put it up here.