problems with png texture maps and alpha

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Thanks for all the help!
I still haven’t managed to fix it but I’ve found a workaround by rearranging stuff so it works without the alpha transparency.
I’ve tried to use a tga image with alpha channel as jfk suggested but didn’t get any better results. I’ve tried it with different meshes, all created in Milkshape and mapped in Unwrap3D, exported as b3d and 3ds files, making sure they contain only one surface group but still no joy! I’ve got a suspicion now that it might be a hardware problem or maybe the display driver. I’ve got an Intel 82865G onboard 3D accelerator with 64 MB of vgaram.
When I got a bit of time I’ll check for a newer driver (the current one is dated 15/4/2003) and I’ll test this alpha mesh stuff on a another box.