Can't seem to alpha this part out...Help!

I have tried to get rid of this part of the Archmage by using the alpha channel but it just reappears everytime i test it. Do i have to get a modeller to get rid of it or am i doing something wrong?

sorry for the double post but why does my arch mages head look so damn ugly. Do i have to fix something on the WE?

Everybody's Archmag eis that ugly :p

Can't help you with the alpha channels, I just have PS Elements, which doens't have alpha channels :(