How does one go about doing this? I tried adding the opacity option in the material, and the alphas appear correctly, but the object they're on becomes partially transparent. The texture on the model is a .TGA with an alpha channel.
Make sure you put the tga also in the opacity slot, and check on alpha (not RGB Intensity) in the Bitmap Parameters > Mono Channel Output. Do this in the opacity slot not the diffuse, leave the diffuse at RGB.
Outside of making sure the materials are correctly setup, you're stuck working with what is 3dsmax4 without a render feature. There have been huge improvements to the viewport and how it handles transparencies, since then.
If you right click the viewport title "perspective" if there is a "transparencies" option you can adjust it to simple or best. If its not there, then more then likely it was added into a newer version of 3dsmax and doesn't support transparencies in the view port =/
One other thing you can try is make sure that the transparency map is enabled in the material.
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Outside of making sure the materials are correctly setup, you're stuck working with what is 3dsmax4 without a render feature. There have been huge improvements to the viewport and how it handles transparencies, since then.
Is Gmax unable to display alphas as transparent?
One other thing you can try is make sure that the transparency map is enabled in the material.