
21. Set Blend to Mix
- Properties menu >> Texture button >> Influence tab
- Blend: Mix

22. Set Alpha Blend: Alpha Clip
- Properties menu >> Material button >> Game Settings tab
- Alpha Blend >> Alpha Clip
Note:
- For this tutorial, I am using Alpha Clip
- Alpha Blend >> Opaque: Render color of textured face as color
- Alpha Blend >> Add: Render face transparent and add color of face
- Alpha Blend >> Alpha Blend: Use texture alpha values with blending
- Alpha Blend >> Alpha Clip: Use texture alpha values with no blending
- Alpha Blend >> Alpha Sort: Sort faces for correct alpha drawing

23. Enable Transparency
- Properties menu >> Material button >> Transparency checkbox

24. Set Z Transparency to 0.0
-
Select Z Transparency button
- Set Alpha slider to 0.0

25. Create an empty UV Map
- Properties menu >> Object Data button >> UV Maps tab >> Plus (+) button
Note:
- A UV Map lets you position the reticle image on the game object