When you get old material used error like this:

Old style material flags used - 200 (with texture path\filename.paa)

That could mean that you need to open the model in O2, select the texture from sections tab, next click SHIFT-E to bring up the menu and from there select “Lighting (Obsolete)” to normal.

Then its fixed.

Old style material flags used - 207: Change the User value in SHIFT-E menu to 0.
Old style material flags used - 1: Change the user value in Face Properties (E menu) to 0.
Old style material flags used - 21 (with texture <null>): Change the user value in Face Properties (E menu) to 0.
Old style material flags used - 20 (with texture <null>): Change the user value in Face Properties (E menu) to 0.

Automatically you can do this with T_D's tool OldFlagsRemover.exe

If you have objects that use same textures, then you cannot regexp binarize log in search of these errors because binarize only reports the TEXTURE and not the OBJECTS that use it in one line. So you have to search binarize log manually for NULL texture and old style material flags.

Also remember that when you binarize, each time you do it its like incremental thing that once model has been binarized and there has been no changes; NOTHING will be written in binarize log, even though the model is completely broken. So each time you want to ensure all your p3ds are correct, delete your binpbo temp directory before binarizing.