Well, I just tested it and it worked fine. I believe it was because you included the number beside the texture? I'm not entirely sure. Here:
Material Code
material AC3D/Shrek/Mat001_Tex00
{
transparency_casts_shadows off
receive_shadows off
technique
{
pass
{
cull_hardware none
cull_software none
alpha_rejection greater_equal 128
texture_unit
{
texture Shrek.png
texture_unit
}
}
}
}
Item code to put in the items.cfg in the FeralHeart folder.
[Shrek]
mesh=DevilsLockMane.mesh
material=AC3D/Shrek/Mat001_Tex00
bone=forehead
offset_f=0 .7 -.4
rotation_f=0 0 0
offset_c=0 1.7 -1
rotation_c=50 0 0