Is this the same problem? I'm using A6.40.5 Extra. I've got these treetops which are box-shaped MDL's, with a TGA skin of leaves. I also tried it with alpha-channeled DDS (dxt3 and 5) and the same thing happens.

The leaves are somehow being cut out, wherever the silhouette of the objects inthe background are. They do not intersect, and the background geometry is actually pretty far away. These aren't sprites, they're models with alpha channels.

Here you can see what the treetop cube should look like (the problem isn't too visible here):



Now here you can see the same treetop cube with the problem significantly more visible.



You can also see how the leaves are visible directly in front of the tree (it looks like they are painted on the tree), but obscured by the far-away MDL terrain geometry behind it.

This has me stumped (hah little tree joke there). Does anyone know how I could remedy this? I hope there's a way, because the "avoid textures with alpha channel" solution is a non-solution.

I'm using 6.40.5 Extra.
yours,