I have a new problem, the item is metalic like but when I pick it up and its shaded, you can see some of the colors.
Either you didn't export it correctly, or Blockland cannot seem to find the tex/mats you exported.
Try making some placeholders with any standard image editor.
Question: can you do this on Wings 3d?
Obviously, as you rig and export to .dts through either Blender or Milkshape.