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You can't load the bitmap directly as a material, you have to use it as a map on a material. Select one of the Default starting materials and scroll down to the Maps rollout. Next to Diffuse click the button in the Map column (it should say "None" right now) and click Bitmap in the list that come up. Then you can choose an image to act as a texture. You'll probably have to deal with scale and UVW mapping coordinates to get it to look right.
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