1. go to the material room 2. apply the texture to the diffuse color and specular color. make sure the diffuse is set to white and specular black. ( you can change these for different effects but the default is black and white) to create the node click on the ball shaped thing next and choose create new node --> 2d textures --> image map choose your file and make sure the lines are connecting the two like in the picture. 3. do the same for transparancy but connect the nodes to the transparancy and transparancy edge lines. Make sure texture strength is set to 1!

if you need more help there are better tutorials i'm sure than this one! look in the tutorials sections here, and at Daz Arcana. www.daz3d.com

take care
Brooke