Yeah, I finally solved my problem! The textures have transparency now, but it was quite a hassle. Because it might be of some use to others, I will try to explain what I did to get it to work. I exported the model from Milkshape to UT's Skeletal format (.psk), so I didn't have to animate the model myself and could use the…
@Ruz: I used photoshop to save the textures and I didn't have problems with the "index 0 thing". I did the following: I erased all the parts of the texture that needed color index 0, using the background eraser tool - leaving them completely transparent. I then converted the textures to the indexed color mode. But before…