Photoshop should be fine for what you want to do. It's because the file is a transparency which uses an Alpha Channel. Open up your .tga with Photoshop and open the Channels window, you should see the actual image you want to enlarge on the channel 'Alpha 1'.
From this point on, I'm afraid thats where my knowledge of messing around with Alpha Channels hits a brick wall. I remember something about the level of blackness relating to the level of tranparency you want to achieve...In most cases, pure standard photoshop black for total transparency, but you shouldnt have to mess around with that...Sometimes it's down to trial and error. Sorry I cant be more helpful.
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