Whenever I try to place the hazard tape that you see around control point using an overlay, it always stretches it, and it just looks wrong. I can't figure out how to make it look right. Any help would be appreciated.
(Like this) Please note that it is also showing the nodraw side (Soild Yellow) for this example. The other hazard strips that are not highlighted are the correct way to place the brushes.
There is a brush version and a decal version of the hazard texture. The other with _decal at the end can be used as overlay.
It's stretching the texture because you have Texture lock on, so disable that. It's the 'tl' icon in the top toolbar.