I have never created a texture before, so I'm learning as I go. I created a texture map to edit in Photoshop, and for the most part, it's looking pretty good while I'm in Edit mode.



A few things are on the wrong sides (like the trace of white on the back leg) but that can be easily fixed. 

When I go into object mode, however, the texture looks quite different:



The rabbit's chest is no longer white, and it has strange bands appearing here and there.

What am I doing wrong? 

Also, is there a way to mirror textures from one side to the other in Blender instead of trying to guesstimate in Photoshop?

Thanks!

Here's my .blend, in case that will help diagnose:
http://www.pasteall.org/blend/29307


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