Thanks alot for all the help. I have atleast gotten it to apply a material onto the surfaces I am getting errors about overlap and such when doing it manually so I am going to check out that toolkit see how it goes.
I will also look into the 2nd UV channel with a proper lightmap.
I know these steps must be very basic for you guys and thank you for your help. I am starting to get somewhere with this now and am beginning to understand how it all works.
EDIT: Here is my . file without any unwrap applied. So you can check the model out for yourself.
://www.speedyshare/nu9YB/Building. (click the link at the top next to file size)