Ahh okay I understand now...

I dont think its a UV problem I think the real problem is just how your graphics card is handling the texture and the model at the same time...so im not sure what the fix on that would be, sorry.

As for the texture problem...well you shouldnt change any of the default hypershade colors or else you can really screw up your scene. I would suggest changing that lambert1 back to the default settings, and make a new lambert checker for the UVs. Truthfully that might be the problem in general...I just know that if you start changing those default colors you can really mess up your scene in the future.