i am having a problem when i create my shader models with tool. My shader is set right in gmax and is rotated around the cylinder like it should. But once i compile it with tool it looks like this instead.. ???HELP????

Have you UVW unwrapped it correctly? it looks like you just sized it in gmax and just kept it that way so it looks good like that, that could be the problem, you have to make it fitting so that without any editing you can just slap it on it, and it should look correct in max.

however, you can also make the texture smaller, by putting it in the detail slot and then raise the scale value, but you'll have to make the top and sides 2 different parts, not 1 unwrap as a whole, i think that the unwrap is the problem