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Originally Posted by Nisgeis
Ah, these are 2d graphics, I thought you were talking originally about 3d. The 2d graphics support the alpha channel for masking purposes. What may be happening is your conversion to bitmap (or is it jpeg) is removing the alpha channel (not sure if BMP supports transparency). Get the dds plugin for photoshop, or get gimp with the dds plugin. Not sure if PNG supports alpha channels, but you might try converting the dds to PNG or TGA instead of bitmap. It's also possible that you are stripping out the alpha channel when you convert to dds, you need to save as DXT3 (default for the game I think) or DXT5. DXT1 doesn't support transparency.
Google dds plugin and you should get the nVidia plugin listed for photoshop.
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You nailed it. It was indeed a problem with a alpha channel. The problem was that using DDS Converter 2 I forgot to turn the DXT3 on so it was not creating alpha channels. Also while saving TGA I saved them as 24-bit instead 32-bit (required to keep alpha channel) which was screwing up the conversion back to .dds file...
Anyway, I got it all figured out so I am working on some upragdes for SH4 now.
Mod, please close this thread.