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Gel-on-Surface Texture Issue

The texture the gel is landing on has equal X and Y scale values and is at a lightmap of 16. Why is the gel stretched out on one axis like this?

http://i.imgur.com/lZuzR.png

Set your shader settings to Very High in the Advanced Video section

It's already set to Very High, and that didn't solve the problem. Changing the setting to anything else also has no effect.