I ran into this procedural texturing tool.
I haven't tried it yet (it's still downloading).
It allows creation of textures in what it describes to be a 'Photoshop'
like manner.
Anyway, the price is right (FREE) and it may be useful for custom
texture work.
It allows the loading of 3d models to see how a texture will look in
use, I don't know if it sup****ts LWO's directly, but I'll post more
after I give it a try.
http://www.mapzoneeditor.com/index.php?PAGE=DOWNLOAD
DangermaN