non decal flags

So, first paste the flag in GIMP in the project having 128x128px (make sure that the yellow lines are in the size of the project, otherwise it won't work correctly - if u want to correct that click Ctrl+X and Ctrl+V and make new layer). Then go to the layer -> Add Mask -> Black. After this go...

Hi, I know there are tutorials for making non decal flags. I have gone through them and tried. The issue i get is, i can get the image to appear in game, but it only appears in shades of grey. i am using photoshop 7.0, from trial and error, i figured out i need an alpha channel, the problem...