Yes, I know it works generally, and it seems to be card dependent, some cards like my old ATI have problems drawing to a texture while rendering is going on, it sometimes causes the texture to become corrupted. That could be a driver issue as much as anything else. Doing it just after the texture is created works ok though and using read/write pixel always seems to work. So you will probably be ok, just suck it and see.
Can't get sprite texture to mask...
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