Discolored Pixel Textures

A few days ago I made a model and used a minecraft skin to texture it in Blender GE. I imported this model to Unity and after importing it and adjusting a the mip map and changing the texture from bilinear to point, I ran my game. I was walking around and noticed the other model I put in for scale was discolored and I can’t get the discoloration to go away. Is it a problem with an import setting or is the texture just too small?

Here is a screen shot = Imgur: The magic of the Internet
The top is the messed up one and the bottom is correct.

Also sorry about the long wait, I was out of town and the hotels did not have internet.

i had the same problem with my sidescrolling game.
all my textures where blurred in the “ingame mode thingy” wile in scene view everything was fine. but in my case, is appeared to happen after i builded the game in a mac standalone.
this fixed it for me:

 renderer.material.mainTexture.mipMapBias = -25;

in my case -25 gave me the best quality.
i worked in javascript by the way, if it gives you problems.
the unity reference advises you to not use smaller values than -0.5, but just take a look if it workes