Well, i try to convert it my self and there was no error... I always use ASCI 3.5 when convert to xsi, or perhaps when you prepare the model you change something?? Well if you want i can post again the model, perhaps it was packing error?
Here the model: (it will work with texture and .mtl file from previous package)
I like your update version, my first look a lot random, and second a little to barren
Well in the end it's your decision i will be happy with any way you choose to go