[ART] Changing an entity's texture entirely...

[Mudbill]

Did you apply an alpha channel to your dds file? If you export it as DXT1, it will have opaque alpha, which means no partial transparency. Black fields on the alpha channel represent solid texture, whereas white represents transparency. Perhaps you already know that. If that's not the problem, it might be the .mat file. Set the type to soliddiffuse if you haven't already. There is a type for translucent, which can make the texture like that. If it's neither of those, I'm not quite sure. Perhaps there's another factor to it.