Textures containing transparent sections

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Not sure I understand what you mean by setting the black to 1,1,1 ...

Here's a very stripped down example of what I'm trying to do.. I'd like the black part of the texture (the black circle) to be transparent or even semi-transparent:

[CODE]

Graphics3D 640,480,0,2

camera = CreateCamera()
light = CreateLight()
cube = CreateCube()
sphere = CreateSphere()

;Create image
gfx = CreateImage(64,64)
SetBuffer ImageBuffer(gfx)
ClsColor 200,0,0
Cls()
Color 0,0,0
Oval 2,2,60,60,True
Color 255,255,255
Text 10,25,"HELLO!"
MaskImage gfx,0,0,0

;Create texture from masked image
tex = CreateTexture(64,64,1)
SetBuffer TextureBuffer(tex)
DrawImage gfx,0,0


SetBuffer BackBuffer()


;Apply texture to cube
EntityTexture cube, tex


;Position Camera
PositionEntity camera,0,-5,0
PointEntity camera,cube

While Not KeyHit(1)
TurnEntity cube,1,2,1
UpdateWorld()
RenderWorld()
Flip()
Wend
End
[/CODE]

-Steve