Max model display problems

[glHalfLife]

Ok, I am having a few problems getting a simple box (made in max), displayed in cstrike.

I have a box made in max and I have applied a texture of a fast jet on it, which is positioned in the Diffuse channel and is located in "sourcesdk\cstrike_sample_content\materialsrc\models" and then the file is "FA18.tga". I exported the SMD file out to the folder "sourcesdk\cstrike_sample_content\model_sources" called "FA18.smd". I created a .qc file in the same folder which includes the following:

$modelname FA18.mdl
$cd "."
$cdmaterials models/
$body studio "FA18.smd"
$sequence idle "FA18.smd" loop fps 1

The resulting .mdl was placed in "counter-strike source\cstrike\models" and then I converted the .tga file to a .vtf file which I placed in "counter-strike source\cstrike\materials\models". I then created a .vmt file which includes the following:

"VertexLitGeneric"
{
"$basetexture" "models/FA18"
}

When I open HAMMER I can selected the FA18.mdl file but the texture is not displayed, instead it has some checkered magenta and black texture. Then when I compile the map and play it in cstrike, the model is not shown at all.

Please help!