Blender 2.69 Creates "Holes" in my textures?


     I recently updated my Blender program from Version 2.59 to 2.69.  When in Viewport shading mode (in Blender Render), I noticed that some  of my partially transparent textures (the ones with alpha transparencies  set in drawn textures) have grey holes on the edges when the object is  NOT selected. I refer to them as 'holes' because I can literally see  through them when zoomed in (For example, if the green y axis is behind a  'hole', I can see the line through my texture). In addition, a  semi-transparent material I used for the sleeve makes the entire sleeve,  and the arm inside it semi-transparent to the grey default background  (For example, if the red x axis is under the sleeve, I can see only the  line and default plane and not the arm within the sleeve). 

     What puzzles me is that I could see everything fine in Blender 2.59,  and the model looks similar to the one in 2.59 when the object IS  selected in Version 2.69. Also, the textures without transparencies set  work/look fine. Any help is appreciated.

(I apologize if any of my descriptions are unclear, for I am fairly new to Blender and to

Thanks in advance,