Quote: "textured in photoshop. I made part of the texture true black (RGB: 0,0,0),"
that is very helpful information, and a fair question, but it would have helped too if you'd included the file format you saved it as, because the reasons will vary for each one.
Simplest way to get the true black bit transparent is to save the texture as a Jpeg.
now, apply the texture to your character or whatever it is, and run a test game.
after quitting the test game, return to the file folder where your jpg texture is,and FPSC will ahve converted it into a .DDS texture, with the trueblack bits transparent.
You can download the
DirectX SDK (google it), which will provide you with a dds texture viewer, and a .dds plugin for photoshop, allowing you to save images as dds images with an alpha (transparent) layer.
hope that helps.
butters