Hi Matt,
3ds max shouldn't have any problems reading the standard materials of SketchUp provided you have converted them in photoshop as you suggested in a previous post. If they are 512x512 or 1024x1024 crytiffs they should be fine to use in 3ds max (Even if they were just jpegs and of any size they should work in 3ds max to be honest, but wont work later in Crysis).
I'd suggest you are doing something wrong when setting up or applying your material in 3ds max rather than it being the fault of the standard sketchup textures. Have you been able to apply any material in 3ds max, and if so how is it different from the Sketchup materials? I'd suggest you revisit the tutorials for creating materials in Max, as while it is possible to export directly from SketchUp to CryEngine, there are a variety of reasons why we are not doing it that way in this course. There is no opportunity for masking materials in Sketchup, nor is there opportunity to animate or create breakable achitecture. If you stick with sketchup and are unable to achieve the realism of 3ds max textures, or the interaction that 3ds max allows, you will have missed two very large components of experiment 2