Alpha channels

[Tropicon]

So I can't get these things to act as trancparency screens like theyr'e supposed to. I've been playing Fate lately and all it's graphics are in convient folders. I'd like to quickly dump them all but unfortunatily instead of using crisp outlines around each sprite the edges fade to white, or black, like in many 3D games. Peardian once told me you can fix this in Photoshop with masks but I could never really get it to work. Anybody know anything about this?

[Garamonde]

Moved to QIT so that more people will see this.

[Tropicon]

Ahh, thanks. Looking around the site I found an example:
http://www.spriters-resource.com/other_s...heet/44189
How did he do this?

Edit: Here's an example of one of the sprites in question and it's alpha.

[Tropicon]

Thanks to the help of Peardian and Piranha Plant from VGMaps here's how to get this to work.
Open the image you want to alpha channel and add a layer mask.
Go to the channel window and at the bottom below the color channels you should see a blank layer mask.
Select the blank layer mask so the eye appears next to it then just paste the alpha there and you've got it.