Texture alpha transparency

[nelsoncs]

I am trying to use Context::DrawImage().

 

When I create a .png image with a transparent alpha channel (screen shot #1) it has a transparent background.

 

When I load this using DrawImage or when I view the auto-created texture in Leadwerks Ide, the background is solid black.

 

Where have I gone wrong or how do I obtain a transparent .tex alpha channel?

 

thanks

[AggrorJorn]

For alpha textures you need to set the compression to dxt5.

[nelsoncs]

Super, thanks Aggror. Looks like I need to read up on compression.