OK I did this small tutorial as I did not have much to do anyway :p
As you open a "TGA" or a "DDS" you will see this normally.
The "Alpha Channel" is not activated by default.
To see the "Alpha Chanel" you have to activate it in the "Channels" window and click the little "eye" icon. As you see a lot of stuff turns red, that is a mask and the "RED" area will be "TRANSPARENT" in game.
So if you just copy/paste a object from the TGA/DDS to a new canvas, it will look like this, no ALPHA CANNEL. You now have to create one.
Simply click the "NEW ALPHA CHANNEL" (left of the dustbin in the Channels Window).
As you see it creates a "RED" mask that covers the whole picture. What you have to do now is simply to select the area you want to be visible using the (in this case the CIRCULAR) "Selector Tool".
Hit "DELETE" after you are happy with the selection and you are finished.
Now all the "RED" mask will be transparent in game and the "normal colored" stuff will be visible.
Hope that will help you further in creating this mod.
Alles bestens und viel glück.
the word "Channel" is misspelled in the graphics as I did this on the fly :p just in case you thought I was talking about a perfume or something
