3D Editor Artifacts with lowfi texture

My models use a shared 8 by 8 texture . The models look fine in Cinema4d but when I upload them I see coloration on some faces (which should be a single flat color), grid-like artifacts which dont exist in the texture and some strange warping around some UVs which again should just be a single flat texture.
I checked the mapping at source and everything looks fine. Whats going on and how can I fix?
Note: I have tried setting the sampling to smooth and pixelated and clamped as well as tiled but its the same with every setting.
Does fab not support 8x8 or very small textures?
Cheers