I have a texture with transparent bits, and have applied it to a face. I’ve gotten those bits to be transparent in GLSL, but not in multitexture.
Transparency in multi-texture requires that you use an image file in RGBA format (the last being the alpha channel which the engine would use to determine transparency).
Alternatively, I think you can use the ‘add’ mode in the material texface options to generate an alpha effect.
Ah! Got it.