Your image in the first post doesn't appear to work, but to get it to load textures you just need to tell it where to look for them. It can accept BMP, TGA, JPG, PCX and most importantly DDS (these are the ones the game will use) file types.
To set up where it should look for them, go to options>preferences. Click browse and find the folder where your textures are. You also might want to add a \ to the end of the path - though I've not confirmed if that's required or not.
As for the looping - you'll have to explain that in more detail. I've never heard of or seen anything like that.