yeah, thats a good way to do it except:
it has to have a UV map in blender sooooo:
http://en.wikibooks.org/wiki/Blender_3D:_Noob_to_Pro/UV_Map_Basics try to follow that as best u can, i know it's hard
i had to get chainy to teach me over skype
it's pretty easy really
if i can remeber off the top of my head:
select a model, go to shading (f5) click meterial buttons (the red ball) and click the add new button, then go to the tab to the far right, and click "add new" then open "map input" (it's in the same tab just look above it, theres some little "tabs" there.
now click the UV button/word,
NOW. go to the texturing buttons (f6) and click add new and image, then select some random texture
now for the last part, click on the model and press "U" make sure your in edit mode (press tab) and select something, this parts hard i mean i still svck at making uv maps
it helps to open a extra window (see nearly any tutorial) and edit it to your neads, so u can see it easy, and change it to how u need.
that confusing i know, but easy as pie once you know