How do I use sprites?

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It's not the best texture format to use for alpha i've found. (maybe i'm not using the correct tools? I've had better luck with .dds textures)

Skidracer wrote a really good piece of code that outlines the mask area with the pixels of non masked colour closest to it, giving a great mask finish. I'm afraid i can't find it, but it's in the code archives.

You basically choose your mask colour for your texture (black i assume?), then send the texture across to the function.