Transparency in game engine changed

What is changed in the way the blender game engine handles transparency?

The first picture show an example in blender 2.57

The next picture shows the same in blender 2.69.

As you can see the crosshair is now displayed as a block.
What setting needs to be changed to have the normal crosshair back?

Enable alpha blend, z transparency and set the texture to affect alpha. You might also need to check “use alpha” for the texture.

Bear in mind that that blendfile was originally made in blender 2.38. (It’s the squish-the-bunny file, right?)
Around the 2.57 mark some big changes were made with how textures were handled, so it wouldn’t surprise me if the textures haven’t been converted from the old texface system.

I thought ‘Squish the Bunny’ was made all the way back in Blender 2.25 (it was a part of the old Blender GE book that I bought nearly ten years ago). I would be surprised if enough logic made it intact in spite of the various API changes to make the gameplay seem functional.

Anyway, transparency does still work in 2.69, but very old files might need some changes as already said.

You’d be more likely to be correct than me. I was just going by what was mentioned on, which has the file there.

At some point, the scripts and logic were updated to blender 2.55