I think this should be pretty simple, but for some reason I can't figure it out. What I'm trying to do is take an image with an alpha channel and translate the transparency from the alpha channel to the actual photoshop layer (so you can see the layers below the transparent areas). I've tried selecting the transparent areas of the alpha channel with the magic wand tool (with various tolerance settings) and then deleting the selected area from the RGB channels, but the results aren't that great (the edges look more jaggy than I would like). Can anyone help me out?
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Also: http://www.poopinmymouth.com/tutorial/masks.htm