Halo effect ?

How can I create a halo effect in the game engine like the one in the boarder girl game at www.blender3d.org (stand-alones)?

Also does anybody know how I can create transperant textures ?

you have to select uvfaceselect mode and go to the edit button and there select tex, halo, and add buttons. u can also select and apply texture from uvimage editor.for transparency select alpha button in the edit button and in objectcolour mode set the alpha(transparency and opacity value).