Draw order of alpha transparent objects in game engine

Is this a bug or is there no way to have multiple objects with alpha transparency in front of one another and have them draw to the screen correctly in the game engine? For some reason the object in the back ground is showing through the object in the fore ground when it should be obscured. Both appear correctly until they are in the same line in front of the camera. What is wrong? Thanks.

edit

Sorry wrong forum. I have posted the same question in the game engine forum.