1- You need to use textures placed in add-ons/shapes/ and load them onto a material in milkshape, and then assign that material to objects you want to have the loaded texture on, as blockland can't use milkshape/3ds created textures, it will just use the materials as a reference to where to place textures and colors from add-ons/shapes/.
2- That happens, select all vertexes and switch to selecting faces to select the bugged one, just click on a face that includes that vertex as one of it's corners.