Hey,
I have tried it using set image colour key and a mask of 30, 255, 0 and 255, 0, 255 and 0, 0, 0 (changing the texture each time accordingly) and i have tried transparancy modes 1~4 (just the second parameter of dbSetObjectTransparency right?) and ALL have the same result. the majority of the transparent part of the texture is transparent properly, but then there is like a halo and some random lines where you can see the backdrop of all things (if i change backdrop colour, halo and line colour change to prove it).
Heres a screenshot:
the 3d object i originally made in milkshape and had no transparancy, just this rectangular excuse for a bush. Then when i got plant life i made some ferns in there, exported as .txt, imported in milkshape and replaced my old rectangular bush with them and then exported a .x which is what im loading. I REALLY need this fixed T_T