How do I attach a picture to a material in V8i?

I have been doing it for years and it is suddenly not working.  Has Bentley reduced features since I have not upgraded?  I have several water pictures that I have used for years and suddenly they are not available.

Could someone explain to me what I am doing wrong now?

and now even when I pick one from open palette, it is not working now.  what is going on?   I pick a material from import, and attach it.  Nothing.  My rectangle is just a grey blob.  Any ideas?