Its very interesting. Both of my boxes had the first parameter, TexCompress=2, at =0 and the second one, TexFlags.TexCompressARBExt=1 was set correctly. Now, the server is the only one I am having an issue with. I changed the server's conf.ini to =2 but left my gamer alone ( =0 ). Now I can load the mission on my server as the host and I can join with my gamer no problem. This morning, I tried to join the gamer, as the host, with my server, and the server loaded up to 85% and then said it could not load the humans. Now, after changing the server's first parameter to =2, I can host from the server OR the gamer and join with the other with no issues. Go figure.
The only issue I have now is, I am not getting any sound out of my gamer. I have checked the control panel and the speakers are set as default and the game has desktop speakers selected. The sound went out on me during the game on Tuesday night.