Anyone else have this problem?

Downloaded MODO materials from the luxology website using the Solidwork Portal.

Unzipped them into a Custom Appearance folder. They show up with a .lxp file extension in the windows directory.

In the TASK PANE - I added the new Custom Appearance folder under Appearances section.

Clicked the folder to view the material so I could drag and drop them onto my part.... No materials are visible. Any material that has associated files (JPG), I can see the JPG image in the TASK PANE. However, the material image does not appear, so there is nothing I can drag and drop.

I am using SW2012 SP5.0. I just talked to my VAR, and he confirms that on his system in 2012 the material does not show up in the task pane. However, when he opens it 2013 - it does show up.

He was not able to identify a work around. Since I am tied to 2012 for a while longer due to the company policy - I am hoping that someone has seen this and been able to come up with a solution.