Quote Originally Posted by Bwian
Thats odd... when I save as .tga, I can safely preserve the alpha channel. I have Photoshop 5.5.... I don't think this is exactly the problem.
It seems that version 7.0 had a bug, because I had no option to select alpha channel when the format tga was selected in "Save as".

This is from Adobe webpage:
Code:
The Adobe® Photoshop® 7.0.1 update fixes a number of problems discovered after Photoshop 7.0 was released. 

The most significant fixes in the 7.0.1 release include the following: 

• Photoshop now saves alpha transparency data in Targa files in the same way it did in previous versions.
And I've remarked this problem by now!!!