Interesting Bug

It seems that if i use a texture with an alpha channel made in paint shop pro 8, it apears distorted and usually blueish in colour.
But, if i apply a normal skin, then add the alpha'ed one in the world editor in the correct path, the team colour shows properly!

Why doesnt 3ds max import psp8 textures properly. Im begining to hate psp, there is always something wrong with it when used for warcraft.

i know what you mean, im not a big fan of psp 2.
i dont know how to fix that bug, but i suggest trying photo shop.
it always worked for me.