Alpha Textures GLSL

4.  GLSL settings
  • Enable: Lights
     
  • Enable: Shaders
     
  • Enable: Shadows
     
  • Enable: Environment Lighting
     
  • Enable: Ramps
     
  • Enable: Nodes
     
  • Enable: Extra Textures
Note:
  • GLSL settings appear only when the Render Engine: Blender Game is selected. 
5.  Add a Plane.
  • 3D View menu >> Add >> Mesh >> Plane
Note:
  • For this tutorial, I'm using a Plane to display the alpha texture.
6.  Add a material.
  • Properties menu >> Material >> New