Any tips for a better hair texture, or maybe a better way to arrange the planes? I use GIMP and a tablet btw. Also any material settings that would make for better rendering?
You can indeed use the image to control transparency; what you need to do is to mix a diffuse shader with a transparent shader, since the diffuse shader itself doesn’t really know what to do with transparency data. In cycles it’s pretty simple, you just run your transparency mask image into the factor input a mix node, and plug the visible shader into one socket and a transparent node into the other socket. If you’re using blender internal render engine for game assets, it should be something similar, but I don’t have the experience to know for sure.
