When I need transparency on a model texture. I use a tga with an alpha channel (stencil cut out). In maya and photoshop I have always had to go specify the alpha channel to be used (a couple other programs just use whatever channel is labeled alpha). I have always built shaders inside of maya's gui and never had to do it by hand (which is where I have been having trouble with md3 files with shaders).
I am sure its possible, I just can't seem to find the line I need to add to select my alpha channel. I have an rgb image with an alpha.
Speaking of md3 models, is there anyone out there who would be available to put a tga (with alpha) on a flat plain and make it an md3 model? I tried to do it in the past and wasn't successful.