WHen you create the .vmt file save the text file as type: all files, and "texturename.vmt" (EXACTLY with the quotes!)
IT should now have the same name as your vmt file.
Ill go over the steps easily. Check if you did all of them
1. Create texture in powers of 2 as a targa file. (BTW when I say HL2 here, just replace that with mod of your choice. MAKE SURE TO SET SDK to mod before compiling with vtex)
2. Save targa in : Steam/steamapps/RotaterSplint/sourcesdkcontent/materialsrc/yourtexturefoldername/
Lets relpace "yourtexturefoldername with ytfm, ok
3. Create the same folder with ytfm in your : Steam/steamapps/RotaterSplint/halflife2/hl2/materials/------PLACE ytfm HERE!
4. Back to your sourcesdk ytfm folder. Drag the tga file in ytfm into vtex. IT will drop the vtf here: Steam/steamapps/RotaterSplint/halflife2/hl2/materials/ytfm
5. Now go there. Create a text file. Save it as I told you above. Place the script I posted earlier. Here is what the script should be:
"LightmappedGeneric"
{ "$basetexture" "ytfm/texturename"
"$surfaceprop" "WHATEVER YOU WANT!"
}
6. Ok now. Everything is in order. Open sdk with the mod and its there. THis is all you do. Just make sure to review and carefully follow the directions I gave.