Alpha is not a problem in Photoshop, you just have to know what you are doing.
The bug with .png in Photoshop was present in PS 6.0, and it is gone in CS. I think it was fixed in PS 6.01 so PS 7 should be fine. (the bug was that it output the wrong gamma settings for .png images.)
To properly export a transparent .png from photoshop, all you need is to have a document that has transparency. (you should see the background checkers in the transparent areas, but this may depend on your preference settings if you have changed things.)
Anyways, here are two simple ways to create a layer with transparency.
1. Start with a transparent layer and draw on it. you can use brush and eraser tools to get what you need.
2. Better method. Create a new layer and then create a layer mask for the layer. Now you can draw anything you want on the layer, and you can draw seperately on the mask to get the transparent effects you want. If you do not know what a layer mask is, do a search in the help. note: this is not the 4th channel you applied above,... it is in the layers pallette, not channels.
The bug with .png in Photoshop was present in PS 6.0, and it is gone in CS. I think it was fixed in PS 6.01 so PS 7 should be fine. (the bug was that it output the wrong gamma settings for .png images.)
To properly export a transparent .png from photoshop, all you need is to have a document that has transparency. (you should see the background checkers in the transparent areas, but this may depend on your preference settings if you have changed things.)
Anyways, here are two simple ways to create a layer with transparency.
1. Start with a transparent layer and draw on it. you can use brush and eraser tools to get what you need.
2. Better method. Create a new layer and then create a layer mask for the layer. Now you can draw anything you want on the layer, and you can draw seperately on the mask to get the transparent effects you want. If you do not know what a layer mask is, do a search in the help. note: this is not the 4th channel you applied above,... it is in the layers pallette, not channels.