Texture alpha bug on render?

I have project which imitates a camera iris type effect. For efficiencies sake, each blade is a rectangle with a texture that has solid colour for the “fin” shape and which is transparent outside of it. This tex is then blended with “Multiply” in the influence panel.

It’s all good on the Texture view mode in the 3D window:

But when I render, there glitches on each blade from the supposedly invisible portion of the rectangle shapes of the neighbouring blades.

If I turn “multiple” to “mix” you can see these edges clearly:

Is this a bug or am I missing something? Note each blade is angled along it’s Y axis ever so slightly as to prevent overlap issues. It’s the BI engine, Blender 2.69

The blend file: http://cl.ly/2F0Z0e0U1x37/air_cr4t_02.blend