I got some weird output here...

anyway, here's my material and mesh settings...
mat_trees = mats.CreateLightMaterial(1f, 1f, 1f, 1f);
mats.SetAmbient(mat_trees, 0.5f, 0.5f, 0.5f, 1f);
mats.SetDiffuse(mat_trees, 0.80f, 0.80f, 0.80f, 1f);
mats.SetSpecular(mat_trees, 0f, 0f, 0f, 1f);
mats.SetPower(mat_trees, 0f);
mats.SetEmissive(mat_trees, 0f, 0f, 0f, 1f)
tree1 = scene.CreateMeshBuilder("tree1");
tree1.LoadTVM("media\\mesh\\tree1.tvm", true, true);
tree1.SetScale(3f, 3f, 3f);
tree1.SetPosition(1355.39f, 0, -2363.20f);
tree1.SetLightingMode(CONST_TV_LIGHTINGMODE.TV_LIGHTING_BUMPMAPPING_TANGENTSPACE);
tree1.SetAlphaTest(true, 0);
tree1.SetMaterial(mat_trees);