Turns out the issue with the texture was related to the one I was using. I went into MS Paint and created a new 512x512 bmp and saved that and applied that to my Tank model and exported this with Raxx's XSI exporter and wala my model texture now shows on the model in BZII. The issue may have been related to BZII requiring all textures be squared in powers of two?
Now the issue seems to be how to link models parts together properly. Anim8or, currently can export a single group of objects, but BZII needs several groups, so that is the next issue to resolve. Here's a screen grab of the model with texture in the BZII map editor.