I'm able to populate the mushrooms here. They look like they're just very small in your scene, or far away; at longer distances from the camera, objects will turn into points, even if the preview mode is Textured. Did you possibly say "Yes" to it being an Xfrog object? Or turn on "source in CM"? This would make the objects quite small (realistically so actually, I think, but still).
- Oshyan
