EntityAutoFade failing

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Hello

This problem has been driving me nuts for days, I am trying to make a character fade out when a distance from the camera, i've tried using entityAutoFade and entityAlpha to achieve the result I am after (a standard range based gradual fade).

The object mesh is animated, i've tried .png with and without alpha channel settings, .jpg and .bmp. I've tried .3ds and .x.

I've tried Texture Filter (1,4 and 8) settings and I have tried entityFX settings (8 and 32).

My .x trees and my internally constructed grass fade fine, but my animated mesh just refuses to fade. The mesh is animated with limb rotations and I have tried exporting it from Max, 3DExploration, and Deep Exploration.

I really dont know what else to try in order to get this object to fade, is there a technical constraint on setting alpha that i'm unaware of?