Gentlemen,In all these years I've been doing repaints, I have always wondered how the alpha channel works, but never bothered to check it out, since I never used it. Today, I happen to be working on a texture for a scenery that needed to be modified. The original texture had the name of an airport sign painted in red. Lately, the sign of the airport name (El Salvador) changed from red to three stripes: blue, white & blue, the colors of its national flag. The original title of the sign had a black background, however, not knowing about the effects of the alpha channel, I saved the file as extended bitmap in DXT3. After opening the scenery to see my change, the black background of the airport sign showed up behind the correction I made, and it looks weird. I would like see the black background dissapear, and I believe that is where the alpha channel is for.Please forgive me for asking the proper steps to achieve this. I know it should be very basic, but, if you don't mind, would someone be able to show me the steps to achieve this?I know I have to open the "Alpha" menu and pull down the different options. Do I select "Create Alpha Channel (black)", or which is the correct one. After that, do I save the file as what?. Thanks for all of your help.Embarrased painter

Never mind, I just figured this one out by trying everything.