POT texture error and Unexpected top level layout group! missing eror

I have been following lecture 70 (Setting up your game space) and have dragged the “Level_01 bg” image into the sprites folder. However, Unity looks different to what it does in the video and exhibits behaviour that is not explained in the video. Firstly i am having to manually change the image from a “texture” to a “sprite (2D and UI)” asset which causes the Unity interface to tell me “Only POT texture can be compressed if mip-maps are enabled”. Secondly, after changing this setting and finding the - now sprite - in the project hierarchy, the sprite editor is no longer available in the inspector pane and Unity is throwing the following error “Unexpected top level layout group! Missing GUILayout.EndScrollView/EndVertical/EndHorizontal” I have no idea how to solve these issues.

I am using unity 4.6.

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