Unity3D Applying Texture - Model turns black

I am following a course to learn Unity3D.

Game Development for iPhone/iPad Using Unity iPhone Tutorials

I am following along whatever author is doing on the screen. He is using Unity 1.6 and I am using Unity 3.40f5

When I try to apply the texture as he does in the movie, my model turns black. Is there something trivial that I am missing here?

Also find the screenshot attached.

Whats happening in the movie with author - alt text

Whats happening on my screen - alt text

maybe you don’t have a light in your scene. Either add a light source or click the “little sunny icon” in your Scene window.