It needs to be a 24 bit TGA with an 8 bit alpha channel saved into it manually. I don't have Photoshop so I won't be able to convert it to that format/colour depth. It can't be done in Paint Shop Pro, but I think it can be done in Gimp - though it's not straightforward. Better to wait for Gregoshi though as he will probably have this done before I can next have a crack at it tomorrow evening.
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