Help with PNG problem

I want to import a PNG, to texture a plane then set the alpha to zero so it looks like its cut out. my problem is that when I import the PNG it gives it a pixelated edge

Original

When its imported to blender

<a href=“http://www.flickr.com/photos/[email protected]/3044010282/” title=“01 by A558632, on Flickr”><img src=“http://farm4.static.flickr.com/3199/3044010282_e7ac3594e8_o.jpg” width=“815” height=“525” alt=“01” /></a>

when i come to render it the edges are not smooth like this,

<a href=“http://www.flickr.com/photos/[email protected]/3044029510/” title=“rendered by A558632, on Flickr”><img src=“http://farm4.static.flickr.com/3140/3044029510_6d885329bf_o.jpg” width=“792” height=“595” alt=“rendered” /></a>

any help would be gratefully appreciated :slight_smile: