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DDS Texture Alpha Channel displays incorrectly in 3DS MAX

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Hi, I am hoping someone can help me with this. I have successfully created a .DDS texture in Photohsop with an Aplha Channel. I used the DDS plugin from Nvidia. I load my texture in the Max material editor, placing it in the Diifuse slot and Opacity slot, but the image's opacity areas do not show up correctly in my viewport or any renders. The Alpha does seem to be working because the areas that should be transparent are indeed, transparent. However, the diffuse area which is the actual image or texture also is transparent and not opaque as it should be. I have saved the .DDS texture to every appropriate format used by the Photoshop plugin and I have tried all settings in the material editor's diffuse and opacity slots but nothing changes. If I use a TGA image in the Max material editor with an Alpha channel, it works just fine. I am at a loss to figure this out and this project has to have a .DDS texture with an alpha. Thanks in advance for any help someone may be able to give. KRULWICK

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