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Anybody know what the deal is with alpha channels on textures, how are they utilised in the game engine, seems like they're converted to a 2-bit texture, i.e 2 colours 1st, Black, 2nd White. I want softer alphas, for dirty, grimy windows, etc, plus they're pixelating quite badly, any solutions ?

I am guessing what you are seeing in game....but you should not have a problem using continuous tone alphas.

If you have a glass texture say - if you split an alpha channel from it that channel needs to be greyscale in appearance i.e. from black to white but it can have as many graduations (greys) as you like in between and it should work fine.

I guess your problem in what you are seeing is that in testing your level you are using 128pixels texture setting which is resulting in a pixilated alpha (glass texture). At 128pixels all of your textures will be of somewhat low quality in game.

You can increase the quality of textures in your levels in your game build settings.

Perhaps that might help.

Thanks, didn't know about those options, that sounds like the culprit.