importing fbx file material black after adding texture in unity

I am an absolute beginner in Unity and blender So i suspect I am missing something "obvious". i create a simple cylinder in blender by

1) Mesh -> add cylinder

2) Add modifier -> solidify.

3) I have optionally gone into edit mode to recompute normals, recalculate outside/inside, or performed UV unwrap.

After that i save as fbx file or just .blend file and import to unity. Note that this .fbx or .blend file has no textures added onto it in blender. just a simple mesh.

Thereafter, i want to add a shader/texture onto it by selecting an image and dropping it on top of the cylinder. It turns black. If i just create a red color material and drop that, it turns red.. but if i create a legacy/diffuse shader (what i want) and add the image as texture, it turns black. For the life of me, i cannot figure out why that is happening.

I have seen some threads on baking texture in blender first, but for my purpose i need to add texture in unity directly. I will appreciate any input on this.

my blender file: http://blend-exchange.giantcowfilms.com/b/2215/ image of what happens when i add the textured material:

[1]: /storage/temp/81835-blender-issue.png