I guess it’s a bit late to be mentioning bugs, but I just found that when using a .tga with alpha channel in 2.49, I get jagged white edges. To make sure it wasn’t an issue with my graphics card, I tried it in 2.28 ( yes, the first raytracing version of blender! ) and it worked fine. So I simply re-rendered it as a .png, and that seemed to work ok. Just thought I’d mention this.