Alpha problems...

The above is a problem I am having with particles and alpha… The particles load up .png sprites (in this case representing smoke) The problem is that anything textured with alpha that is behind these particles disappears! All model textures are applied in the moddeller (Max 7) so all textures and alpha are already specified in the .egg file and the particles are being loaded from .ptf files.

Is this a known problem?

See the manual page: Transparency and Blending