Level Designing in 3D. Help!

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I'm slowly making my way through all the problems I'm having with 3D. Should be halfway there by now! ;)

Anyway, I've been having a bit of a concern when it comes to level design - specifically texturing them. I can't seem to find a good technique for texturing a city-like multitextured area using 3D Studio MAX.

I've tried two different ways so far - one is to use Multi/Sub Object Materials to give specific polygons different tiled textures, and to adjust the texture repeating using the UVW Map Effector. Now when I export in .x or .3ds format to check in Ultimate Unwrap it's recognised that I've given these polygons different Sub-Object materials, but the textures don't show. Exporting this format using .u3d format doesn't show any materials on the object at all.

The other method I tried was to use Unwrap UVW to map the UVWs onto a previously compiled texture with all my textures on it - this works, but to be frank it looks like arse (stretched textures all over the place).

Am I doing something wrong, or just going through a wrong thought process when it comes to texturing levels? I have very little experience with texturing envorinments for games design, so that might be it.

How would you clever lot normally go about it?