Painting Decals onto Textured Meshes, how to?

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Mortiis, the problem is that with sprite decals the following problem happens:


Or else I wouldn't have a problem using it, like I stated in my first post.

@Ross C: Thanks for the Code Archive suggestion! I looked up and found that code from Fredborg, it really sounds promising! perhaps I can use a different texture layer with multiply mode and insert the decals as I please. But it is still very complicated kekekek