I was trying to figure out how to use transparent image texture with blender 2.7 as it was familiar in 2.4 and earlier.I downloaded free 3d model for a boy and i want to use the textures with it .But when i linked with blender materials i got black color instead of the transparency. I went through many articles and videos about Cycle Engine but i just want it simpler
Depending on the direction of your lighting you should also enable ‘Receive Transparent’ for any material that these transparent textures may cast shadows on, including the hair material itself.
Also you should look at the reducing the specular alpha as well otherwise if the specularity is high it can show the whole plane, including the transparent areas