Step 1: Create a new image. Spoiler: Images Step 2: Making the image you'd like. I'm just ganna make something random. Spoiler: Images [img width=599 height=500]http://tacticalgaming.x10.mx/tut/making1.png[/img] Step 3: Creating transparent background. 1) Create a new layer, and paint it 100% grey. 2) Hold Ctrl than click on the little icon on the layer with the image you want to be shown. Spoiler: Images [img width=800 height=392]http://tacticalgaming.x10.mx/tut/making2.png[/img] 3) Next to the "Layers" Tab, Click on the "Channels" Tab. Spoiler: Images 4) Create a new layer in that tab by click the new layers button. Spoiler: Images 5) Now, go to the paint bucket tool and click inside the selected areas. Than hit Ctrl+d. Spoiler: Images [img width=599 height=500]http://tacticalgaming.x10.mx/tut/making5.png[/img] 6) Go back to the layers tab and save the image as a .tga and you're done!
The website he was using to host his images is no longer online. He would need to edit his post with new images.