Making a red dot with a black border!

I have tried to make a red dot with black border, and for some reason it seems to merge the black into the red, any ideas?

This is how I tried:

Open PS, use a previously made png and save as dds, use 1 mipmap, import to package set alpha texture true and set in Weapons.ini

How do you set the alpha in TribesEd? Is it done at import? Id like to be able to use teh alpha chanel properly.

Thanks

Right click the texture, properties, structure, alpha texture - set this to True.

Did you use DXT3 compression?

Sure did, have got it to work now, made a "DotRet" pack if anyone is interested, basically someone requested me to make every reticle a dot but a different colour for each weapon, I can post pics if you want, nothing fancy just a simple ret with a simple identification for weapon in hand.