[magnesium12]

it probably has to do with the alpha channels. when you drew the bigger square did you also make a similar change to the alpha 1 channel? its hard to explain so i'll let someone else do it in detail if need be. basically make sure you have the 'view channels' window open and when you load up the crosshair tga you'll notice an alpha 1 channel. it'll be in black and white (or shades of gray) and will look very similar in design to the crosshair pattern in the RGB channel.

heres a few things about the alpha 1 channel:

* anything covered in black will end up being transparent in the game.
* anything covered in white will not be transparent and will show up as being whatever color it is in the RGB channel.
* shades of gray define varying levels of transparency (a gray thats 50% black and white will be 50% transparent)