Texture objects

I define a texture object (of the type paletted texture) and trying to use it with glBindTexture but see garbage. What can be the reason for that? I define the texture object in a display list and using that object name in a new display list that replace the old one (in which the object was defined). Is this might be the reason? doe’s a texture object still valid after deleting the display list in which it was defined?
Is there any limitation using texture objects in display lists?
Many thanks,