Transparent UV Texture in 2.49?

How to make Transparent Textures?

I have unwrapped the object, loaded a transparent .png and the object shows the texture. When I click the “draws image with alpha” button, the texture on the object didn’t go transparent.

Am I missing sometheing?

Go into edit mode. Select all faces. Make sure that at least one is active.

Go into the texture face panel. (Buttons window.)

Hit “Alpha” then use Ctrl+C to copy it to all faces. (Just the transparency)