OK, I see the problem. For others also to understand; if you want to import an image to texture existing faces, in the import browser window, select "Import as texture" instead of "Import as image".

Well you can change the position of the texture and stretch it a bit, but not proper UVing. to do the moving/stretching thing: right click on a single face with applied texture->texture->position then click the little handles on the texture.

Thanks for that tutorial on 3D Warehouse Gaieus. I have several models of stairs that revolve around a central wood column and I could never get that quite right - your tutorial solved the problem. Now I want to experiment with the method on the front bullnose edge of a stair tread which can get kind of messy when textured.