upload the tga texture to let me check it

http://www.raymix.net/sigs/skins.rar
i included both, with and without extra layer. skin without extra layer made model to disapear in game, but not in WED

as i thought, your alpha channel contains a pure white map. try this:
http://i.1asphost.com/gaardenier/skin.tga

i uploaded tree model, its autogenerated so should be ok :-) Here: treetest.3DS

can you tell me what did u changed in alpha channel? as i said i had black pictre, wich dunno how changed to white, and i had opacity 50%
lol this is how ur skin looks like:

ok i used my code, code given by loopix and wiki's code
my code has nearest results, those 2 both made that tree to strip, except wiki's code made small green dots!!

this is my code and result:
action tree1
{
my.overlay = on;
my.transparent = off;
my.alpha = 100;
}

BUT, its still transparent :/ and the stubs of tree are still cut in peaces too

yeah i just was to lazy to set up the alpha channel for the leaves, so they are slightly transparent.

wood - white alpha (100% white - no transparency)
leaves - change as you like ( i have made em a light grey, so they are quite transparent)
black - black (100% transparent)

Success! thanks alot mate
i didnt know i have to draw alpha channels myself. All i did now to get it to work, was: i copy/pasted leaf picture and changed its contrast to 100%, then copy/pasted tree texture and added contrast/brightness 100% as well.
my branches was still cut in peaces, but i found solution, i went back into 3dsmax and unwrapped texture. Seems like there was few uncorrect wraps. my bad!
and used my own basic code.
anyways, thanks alot again my friend

here's a picture

Not sure about photoshop or whatever but if you want you could try and download gimp. Its free. Then go to layer>transparency>color to alpha and select black 0,0,0 it will turn all your black transparent save it again as a tga and should work.

Hope this helps or makes sense

thanks FeiHongJr
but this way is ok for me
the problem in last image was that all leaves tried to "show" themselves, so the tree was actually horrible looking :P
i replaced code with wiki's one and tree looks soo gorgeus now!

look!
more pictures here

You need to update Photoshop from 7.0 to 7.01.
There's a bug in 7.0 concerning the tga alpha-export.