@darimc- you couldn't be more wrong..
@Hardcore- that is way to big for what you are trying to do. try using a 5512x512 texture for this model.
It seems that the UVmap is not proportional to the model. the edges of the main body are to small causing it to stretch over the model..
Instead of making the edges smaller in on the UVMap, make them bigger or leave them the sames size as they were when you first unwapped it. If you do that then you will fix your problem.
Why on earth would you use a 1024x1024 or a 2046x2046 for that type of model? if it doesn't have a lot of painted detail then keep it small..
Cheers,
Dave