Is that one object? as mickhah said the texture appears to be repeated on each individual face. I would delete the lambert...select the object again and put the .png into the colour slot in the new lambert...something you have done is odd there. If you have done it as per normal you shouldnt have to fool with the UV/place 2D settings. I think there is also a scale ratio/normalistaion tab in the imported texture file node, set that to none or off.
"A Darkness at Sethanon", a book I aspire to model some of the charcters and scenes