I went back into Unity today to see If I could figure out the problem before having to ask for help again. Whilst analyzing my level I noticed that there were multiple meshes on the lantern. Some where along the way (most probably in Maya) I had duplicated the lantern object several times, what had been happing was that the multiple objects were all intersecting with each other causing the object's texture map to look weird or distorted. By simply deleting the duplicates I had my Lanterns back to the way I wanted.
In terms of the minor texture problem on the skull items, I considered the time I had and what was left to do, ultimately the anomaly is minor and doesn't take away from the experience of the game level.
I adjusted the particle flames and set out to the next step, applying sound!