Okay. After you've chosen the UVMapper bitmap as the texture, go to a). Locate the inverted UVMapper bitmap, click okay, and you should see something like you see here - only the black wireframe in the rightmost window. Click okay. Now, in the material editor, put a button on Transparency in the same channel where you've put the UVMapper bitmap, probably channel A. That's step b). Step c) is to make certain that transparency remains on zero. Step d) is to check Blend Transparency in the Material Options menu you get when you click on the triangle on the left side of texture window. And that's it. But what I see is that your mapping is off. You have to create a separate map for the hair, too, and apply it separately.

-- erlik