Alpha texture turning mesh black

[malienna]

I am trying to add an alpha texture to a mesh body but the areas which are supposed to be transparent are black. The Alpha mode is greyed out. I am not sure what I am doing wrong. If someone could kindly point me in the direction of a tutorial for how to properly add alpha textures to mesh I would be most grateful! (I tried googling but did not find the information I needed)

 

[Lindal Kidd]

The Alpha Mode selector in your Texture window is showing None and is greyed out.  I believe this is because you failed to upload the texture in a format that supports alpha channels.

[malienna]

Thank you so much Lindal!