I googles a bit and it seems like a problem with the CS3 version of photoshop.

But there is a patch somewhere on the Adobe homepage, find it, install it and it should work again!

heres the quote from the adobe forums:

Quote:
When Adobe changed how the Alpha channels were handled in Targa files they didn't bother to notice how the files were actually being used in the real world. Everyone bitched about it and their initial response was that the original Targa behavior was wrong. Thankfully, they relented and posted a Targa "fix" which restored the original alpha channel functionalitiy. You should still be able to download that from the Adobe site.


Thankfully I never updated to CS3, that problem would have driven me insane aswell!


"Sometimes JCL reminds me of Notch, but more competent" ~ Kiyaku