OK, so you got that right. I was trying to use the game object and not the component. SO now I can change textures.
HOWEVER, my next issue is how do I change it from a prefab? I can change the prefab's texture (the flag) but then the prefab is also change. SO I want to change the texture on a CLONE in the hierarchy.
HOWEVER, the clone is now referenced by a variable. How would I change the texture of the CLONE?
One way is just to change the prefab's texture and then instantiate a object. I could do this every time I create an object. However, is there a better way? I want to be able to change the texture of a clone in the hierarchy that's game object is a variable.