I’m only familiar with 2.5x, so I’m not sure where this would be in 2.49, but something similar happened to me a few times when adding texture to models, so hopefully it will help you. In your Texture settings, check in Influence the section, there is an option for RGB to Intensity, and the default color is that bright pink color. If I remember correctly (it’s been a while since I ran into this), this happens when you use one of the texture options (clouds, magic, noise, etc.) and do not assign it a ramp in the Color section. Try assigning a ramp to the model and see what happens. Hope that helps.