Applying a new skin to a new model

How do I apply a skin I made to a new model. I already know that I have to go to the Material Editor and press the bitmap button and then find the TGA, but then I can't apply the Targa image to the selection that I had when I Unwrapped the UVW and then got the skin. The button that is "Apply Material to Selection" is all grey, as is the "Put Material to Scene" button, as well as a few others. I am attaching the model & skin files, along with some screenshots so you can better visualize it.

BTW, I am making a peacock as the model, and if any of you don't know how to explain it or don't know what's the trouble I'm having but can apply it for me, then please do so.

Also, PLEASE PLEASE PLEASE HELP ME AS SOON AS POSSIBLE! I'M TRYING TO COMPLETE THIS FOR A DEADLINE!

i have a question.....when i try to open a custom model that i dowloaded and extracted files of it says it needs to know what program created it.....so wat should i do...the model wont show up in my import manager either...NEED HELP!!

well, I'd suggest trying to re download the file and if that doesn't work go to war3sear.ch and find the tutorial on importing models and skins.

BUT, STILL PLEASE HELP ME WITH MY QUESTION GUYS!!!

spitfire, STFU, don't f*ckin ask off-topic questions in the middle of someone else's plead for help

koolchaos, here's a short tut.
1) Load your model
2) Select Faces of certain spots you want to skin accurately and detach them from the model, if you don't know how to detach, ask
3) Select the mesh you want to unwrap and go to UVW Map, then, when it's selected Plane, you can adjust how you want the unwrap to be. Plain is the best when you adjust it so the face of it looks like a photo from a camera.
4) When you're done adjusting the uvw map, open UVW Unwrap and go to the option EDIT
5) You'll see your unwrap there. Next is to attach the other unwraps of meshes if you detached them. Note that the only part that you can skin in the unwrap is in that box that the UVW Unwrap EDIT provides.
6) When you're done, Extract the Model as a .3ds along w/ the MAX Texture (Unwrap)
7) Download LithUnwrap
8) Open your Model in Lithunwrap
9) Save the unwrap as a .tga and save the model over it's .3ds file
10) Edit your skin anyway you want
11) To view your skin on the model, press "M" on a viewport and the Mapping tool shows up
12) Click the button next to Default (Standard)
13) Select Warcraft III
14) When the new window opens, select the empty square next to "Diffuse" and find your .tga file that you saved
15) When the skin shows up in one of the spheres, click on the checkered box somewhere on the template, then drag the sphere to your model and if you did everything correctly, viola!

~Any questions, just ask

Well, fortunately, I found someone else to do the application of the skin. I'm really too tired right now to apply the skin but thanks anyway.

press the checkered blue and white box