N64 Model Ripping - texture problem

Hi all,

I have followed these instructions for ripping a model (Cranky Kong from DK64) from Project 64 emulator:

http://www.zapotlanejo.info/Nintendopapercraftforum/viewtopic.php?p=1629#p1629

I then import everything into Blender and clean things up (delete redundant vertices, merge vertices, etc). Once this is all done, when I smooth the models, things look nice and good in solid shading. However, when I view the model in texture shading, Cranky's brown fur looks messed up (among other things). His fur makes his body look all blocky, even though the body looks smooth in solid shading mode.



I have tried many things to fix it, but I honestly cannot figure out how to do so.

Does anyone know how to get the model looking smooth in texture shading? I would very much appreciate your help.