Convert the jpeg to .bmp,psd or.tiff and load it from the picture editor.(those formats support transparency,..jpegs don't) You can then save it in the materials library (but you will not be able to access the Deep texture editor with a picture material.that is the DTE library shown in your screen shot, not the materials library)then add it in the materials library like Boney said. Hope this helps Hawkfyr

“The fact that no one understands you…Doesn’t make you an artist.”