FWIW, I didn't have Use Maximum Texture Size ticked when I imported your image.
As to what you did differently, before, I guess I don't know. It's possible that instead of setting the length of the material by clicking on the right edge of the rectangle, you clicked on the far horizontal edge and the rectangle wasn't the right width. Might be possible to deconstruct the SKP file to figure it out but since you've now got it sorted, don't look back.
