city gen still doesnt apply actual materias to the meshes just basic zones for differentiation

the nodes control the materials

on www.cgcookie.com thet just released part 2 of a nodes tut that can be of some help but you realy need to reffer to the .pdf book i posted a while back for a better description

and witht the nodes what you have to watch is is the type that you add and the order that they are added in

in your post i see none are set to define the diffusion, AO, spec., or the normals even though they are checked