I’m having this issue in blender 2.71, alpha blending or opaque seem to not work properly, or only work when they’re selected like so.
So i thought “ok, maybe it needs to be in the play game mode?” but that did this…
But the worst thing is that its inconsistent, i have a plane with a shade of blue over the eyes and that looks fine but everything else looks terrible. The spot on the eye there also has an alpha.
cycling through all the alpha settings
setting premultiply on the alpha texture