ArtPearl,

Yes, I meant White on Black. Sorry. The reason for it is if you use a scale factor smaller than 1, you will see it doesn't work with black on white-- even without the opposite tile. So, you CAN make your lettering smaller. This is imporant if you just want to put a small decal on the lower right of an object. You don't need to put "lots of space around it."

Alpha nodes are layer functions, and as such can be controlled with the alpha slider. I prefer them as they were designed to work with layers, whereas transparencies were originally designed to work with mixed materials-- though they do work with layers as well.

Also, remember, if you want to make it smaller and move it around the object, you need to use Object-Standard mapping mode! Then adjust the X and Y scale of the projected texture along with it's origin to suit.