I have made wallstickers before, but as its always few and far between, usually follow a tutorial, except now I cant find said tutorial.
Im having a problem after build dxt that when my image Im using shows up as the recolour it is no longer transparent. step by step of 2 different ways of what Ive been doing:

Option 1

1. open image
2. using magic wand tool make background transparent
3. save as png
4. in SimPE export mesh
5. open in paint.net
6. erase mesh picture
7. copy my image onto mesh
8. save as png
9 in SimPE build dxt
10. dxt format 3, sharpen none
11. commit
12. save as dbpf package

Option 2

1. open image
2. using magic wand tool make background transparent
3. save as png
4. in SimPE export mesh
5. open in paint.net
6. erase mesh picture
7. add new layer
8. copy my image onto mesh
9. Flatten
10. save as png
11. in SimPE build dxt
12. dxt format 3, sharpen none
13. commit
14. save as dbpf package

Both times (and all the ones in between) when I put it into SimPE its no longer transparent. Could anyone please help me?