Damnit to hell.
Okay . . . here's what I do:
Using Photoshop CS2
1. File/New - - > 514 x 128 resolution 72 RGB image
2. Image appears with a white background. I then click on the channel box. And click on "create new channel icon"
3. New channel appears called "Alpha 1" (in typical freespace fashion, haha). At this point, I have in the layers box a background layer, pure white. Which is locked. In the channels layer I have 5 channels, RGB, Red, Green, Blue and Alpha 1. Alpha 1 is black, the other channels are white.
4. With Alpha 1 channel selected, I use the type tool and using the stop font I write a ship name (ie GTD Moron) using 200/200/200 grey.
5. Now at this point, the background is white. Channels RGB, Red, Green, Blue are white. Alpha 1 channel is black with GTD Moron in 200/200/200 grey.
6. I go to save as, and select DDS format. I select DXT5 format . . it says "DXT5 ARGB 8 bpp | interpolated alpha" I click "2D Preview". It shows me my 'nameplate'. On the bottom of the preview is a black rectangle on the left, and a white rectangle on the right. Moving up . . .ah screw it here's a screenshot (see bottom).
7. Anyway, I save it. Then I load it up against with Photoshop, all I get is a white rectangle. The alpha channel is missing. Similarly, I load it into FSOpen, white rectangle. I'm obviously doing something wrong . . . my photoshop-fu is not all that good.
