I was doing the WED tutorial from the download page. After making the house, chimney, tool shed etc. there is a sprite area under "Textures - Further Finesses - Part II" section. It says using black bg on "the sign sprite" will make it transparent. However, I'm having varying results with my A7. I believe the tutorial was made based on A5 or A6.

So how to do it on A7? please help. Also while building if i don't uncheck "create meshes" from the default settings while using sprites it crashes on running the level. Is it normal?