UltraFastImage: Dynamically generated alpha/masks?

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Is it possible somehow using the Fastimage dll to use alpha or masking features with "self-created" or dynamically-generated textures? (eg: black = transparent)

I've seen the question pop up before but never seen a straight solution.
I can't possibly go through each pixel converting them from 24 to 32 bit. ReadPixelFast and WritePixelFast simply ain't 'fast enough..

SetBlend FI_MASKBLEND also only seems to work on 'loaded' textures and not on created ones..

I was thinking that maybe the 'SetCustomBlend' function could solve this. If not in a single pass, perhaps in multiple passes??
For example, where one operation removes the underlying background before pasting the (semi-)masked texture. If that makes any sense..

I've tried playing with 'SetCustomBlend' but I simply haven't got a clue how it works or what I'm doing really :(

Anyone got any ideas or solutions?

Danny