So I managed to fix it, and here's where I went wrong.
For the "Material" section under Source Engine, I had put the full directory (Steam/Steamapps...) when it's only supposed to look for folders in the game's "materials" folder itself. Compiling the model with that fixed the texture.
I wish I used SFM's model viewer first, that "Materials used" bar is a great addition.
Thank you Artfunkel and Vintage for your help.

For SFM, the model doesn't seem to list any materials, so it's impossible to overwrite it.

Here's the model viewer
http://imgur.com/VKng0lT

I'm going to be away for about 30 minutes, so when I get back I'll try SFM.
Thank you everybody for your help so far!

Only the Vphysics error, unfortunatly.
http://pastebin.com/aB565rXg

Made a test map for EP2, the only error that came back in the console was
SOLID_VPHYSICS static prop with no vphysics model! (models/sims4/megacoffeetable.mdl)
'

The vmt is megacoffeetable.vmt, the same as the vtf.
The object does have a material, but I've been exporting with "Ignore Blender Materials" on. Unless having a material would still create problems.

My goal was to convert a Sims 4 model to Source, but I can’t get the model to use its material, so it's displayed as the almighty purple and black texture. HLMV says it can’t find the VMT, which is in the folder defined in the QC.

http://i.imgur.com/Dh9if7G.png
Here is the scene in Blender, along with the “material” display. I've tried so many combinations of renaming the texture, but HLMV still returns purple and black. Any help would be appreciated.



QC
$modelname "sims4\megacoffeetable.mdl"
$body table "s4studio_mesh_2.dmx"
$staticprop
$surfaceprop Wood_Furniture
$cdmaterials "models\sims4\"

$sequence idle "s4studio_mesh_2.dmx"


VMT
"VertexLitGeneric"
{
"$basetexture" "models\sims4\megacoffeetable"
"$surfaceprop" "Wood_Furniture"
"$model" 1

}