Imported textures with an alpha layer are flipped?

[Satesh]

Howdy,
I'm trying to make my own skins, but when I import a texture to use that has an alpha layer on it, the texture is flipped and sometimes panned wrong aswell. If anyone had a way to stop it doing this that doesn't involve flipping and panning the image before importing it i'd really appreciate the info. ;)

[[SAS]Solid Snake]

What format is this in and how did you save it?

[Stigmata]

yeah, I've found that using .tga is best for alpha channel support

[Satesh]

I am using *.tga for the files with an alpha channel.
The way I make them is using Paint Shop Pro:

Make image...
Convert image to a mask using source luminace...
Save mask as alpha layer...
Merge layers...
Save image...
and import to unrealEd.

All textures I've made this way come out flipped in UnrealEd... and also in UPaint...
Any ideas as to what I'm doing wrong?