© FGI Services 2007
So, to summarise:

1. Set 'Ambient', 'Diffuse', 'Reflect' and 'Luminosity' colours to Black, and              
    'Transparency' colour to White. Set IOR to 1.6 (variable).
2. Place the Image in the 'Diffuse' Map slot as a 'Bitmap' map.
3. Place the (inverted) mask image in the 'Transparency' Map slot, black=image,   
    white=background.
4. Render.

Really quite simple when you look at it like that, but hopefully going through the
'experimental' stages will help you to understand how transparency works.
There is obviously more to transparency than this but as a starting
point...............enjoy.
Page: 7.
Rendered with 'shell' modifier (no pun intended) and Planar mapping.
Tutorial 3.

Applying Images To Transparent Materials.
Using mental ray renderer.
Page jump:  H  1  2  3  4  5  6  7