Removing unwanted parts on a skin

Could someone tell me in photoshop 7.0 how to make things such as capes transperent when the skin is applied to a model.

surely, heres a tutorial on how to alpha things out :D

and heres a link to the targa plug-in you also will need.

I know I found it just after I posted....

Now on a slightly different note. When ever I try to alpha a part that would normally display the team colour, the area turns to team colour instead of disapearing. How can I fix that?