I have just gotton to residual processing (chapter 10) after surviving the knockout blow / trash compactor.
When I startup Blackmesa the screen temp shows as black / pink squares but eventually loads up the background that shows the area you end up in after the trash compactor (it has the water tower you need to swim down in).
When I load the game from an autosave thats just beyond where you see barney / residual processing level name displayed on screen the screen again goes to black / pink squares during the loading.
Have already got Source SDK base 2006 / 2007 installed (both got auto installed on first game launch)
Used the installer that came with mod so files have been put into correct folders. Mod is installed into sourcemods\BMS
I know that the black / pink squares are show for missing textures in source, but the fact that the background eventually shows up would seem to suggest the textures are not actually missing.
Half-Life 2 & synergy run fine.
Running
windows vista x64
Nvidia 9600GT
4 gig of system ram