The material editor allows you to create, edit, and view materials. On the left side is the material list and above it is buttons for creating materials, loading existing materials, and deleting materials.
The main properties panel is where a majority of settings for the material is set.
The texture panel is where you set textures for the material. Each material can have multiple texture levels which you can set here.
The material preview allows you to view the current material on a mesh.
#1 - The default mesh is a cube but you can change it by clicking material mesh preview button on the tool bar below the preview.
#2 -The last option allows you to edit the camera actions on the material view.
If lighting is checked, then you will need to enable a light on the preview window to view it.
