youd didn't need to post the whole thing.
nvm i solved the problem myself though... just do the sphere thing and make it transparent (its the right slider on materials) and assign a texture that is included in BL named blank.png
Make sure it goes invisible
Set its LOD to 0 and assign a new material to it and change the detail to 0, both of those options are on the Torque DTS Plus exporter, on the EDIT buttons on the materials and groups....
Then export it... im sure the white sphere would'nt appear anymore