Alright so just to be certain I am thinking the right thing. When you add the BUMP image for the cavalry unit, it turns purple and you want not to be that way?
I took a look in that water reflection BUMP that you showed me. the XDB that points to the texture has the following entries.
REGULAR
CONVERT_ORDINARY
WRAP
TF_565
1024
1024
0
1
0
-8684289
false
false
false
true
false
What value do you use for AverageColor and is it possible to be causing the purplish colors?
Also a side question - what is the meaning of
?