Another way Ive HEARD of, but never tried...
Ditch the alpha from the TGA, but where there was alpha, make the texture black.
Black-black. r=0, g=0, b=0.
Then for the models needing it, turn on the OVERLAY flag. Black-Black will go invisible...
OR
Set the "d3d_autotransparency" to 1 in main, and make sure pixel Zero (top-left) is the color you want transparent.
Then for the models needing it, turn on the OVERLAY flag. Whatever color pixel Zero is will go invisible...
TRY THIS SMALL SCALE FIRST. Results can sometimes look CRAP! According to other members of the forum.
If you end up HAVING to stay with alpha, wait for further responses.
I dont know of a way around the z-sort errors, but I havent dealt with them so I could easily be unaware of a fix...