The problem is the lightmap. EntityAlpha only effects entities that use additive, or alpha blend modes. So the lightmap, which uses multiply mode, won't work.
What lightmapped tool did you use to create the entity? If you used Gile[s] you can change the lightmaps to use vertex colours which can be alpha blended (i think)
What lightmapped tool did you use to create the entity? If you used Gile[s] you can change the lightmaps to use vertex colours which can be alpha blended (i think)