Sadsack...
You can find info on how to add an alpha channel in the "MystyMood" project by Loopix.
Here is a link:
http://www.loopix-project.com/When you go to the web site click on the "Easy" button then click on "Templates" then download the project type of your choice.
In "mystymood_help" look under "Creating underwater caustics".
There is a good explaination of how to add an alpha channel using "Gimp"
But... Here's what it says!
Open ... your picture file... in GIMP
Add an alpha channel (Layer->Transparency->Add Alpha Channel)
Add a layer mask (Layer->Mask->Add Layer Mask...initialize the mask to Layer's alpha channel)
Display the layer mask (Layer->Mask->Show Layer Mask) and make sure that it is black (if it's not you have to do it)
Now open... your black and white image, to be put into the alpha channel... in GIMP
Select it (Selec->All) and copy the selection (Edit->Copy)
Now you switch back to the black layer mask image and paste what you've copied (Edit->Paste)
Anchor the pasted layer (Layer->Anchor Layer)...now you should have a black 'n' white mask image
Save the image as non RLE compressed tga image...
You can also learn how to add an alpha channel by researching the help sections of your paint software by looking at the sections about layers and masks...
Best of luck!