Importing from Blender to Unity

Ok... I basically made a open-top box in Blender. All the faces are pointed in the correct direction. My problem is that when I save it into the Assets folder it shows up as a paper icon instead of a picture of the model itself. It isn't animated in any way shape or form. It is saved as a '.blend'. I know Unity is able to use them by default in it's Free version... What could I possibly be doing wrong? I've watched videos on Youtube to see if that could help me to no avail as all they do is just place the save file in a place in the Assets folder and it works just fine. -.-



Here's a picture to outline my basic problem.

 

Also worth noting is that an error pops up on Unity saying:

"Blender could not convert the .blend file to FBX file.
You need to use Blender 2.45-2.49 or 2.58 and later versions for direct Blender import to work."

Thing is, I'm using Blender 2.69.

 

Try exporting from Blender as fbx and copying that to the Assets folder, instead of putting the blend file there.

 

Change to object mode then save, it's a problem I had a while ago.

 

After doing that it stopped being stupid. If that was it or not, thanks. It was driving me nuts.