Doh! Looks like I forgot to keep the 'delete aplha channel' & 'save as png' in the action script. You can add those to the action if you want, then when you run the batch process in PS, it'll save them all out as png's where you want them.
Back when I was doing PS2 stuff that needed to be converted from TGA to PNG, I used a bat file calling ImageMagick to do the initial conversion, then PNGQuant to reduce the bit depth. PNGQuant is great as it handles palettized alpha http://studio.imagemagick.org/script/index.php…