Problem with Alpha channels in Photoshop 7.0 (with targa plugin)

even with the targa olugin im having troubles editing the alpha channel. Im using the ogre warrior blp, and when i try to edit the alpha layer, everything is white except for the team color stuff. Is this normal. Cause if it is, how am i supposed to alpha out stuff if i cant see it. Here ill post a screenie of what im gettin

Turn on one or two of the other channels (red, green, or blue) or select the area before going into the alpha channel.

So if you color the part you want black, it becomes invisible? or teamcolored?

thx but how can i make it just edit in the channel, wont it edit in the other too?