How come transparency in textures appears as white in 3ds Max?

Question

I have downloaded a free tree palm model that came with textures and a preview image. In the preview image the tree looks fine, but when I have deployed the textures to my scene, the leaves look green plus white, where white is the transparency area.

Is there something I need to know about transparent textures? Both in the view-port and in the renderer all transparency appears as white.

What could it be?

Edit:

The model I was talking about is implemented with two JPGs. One is textured and the other one is black-white where white represents transparency and is applied to the material in the opacity channel/map.

The transparency seems to work somewhat, but there are white borders around the leaves. I think it's because the opacity channel does not properly filter out all white colors for some reason. It also seems that changing the blur affects it, but setting it to 0 does not remove it though (and makes it jaggy).

Answer 1

From what I could find on google, it doesn't use the PNG's alpha transparency by default, but there's a trick to turn it on.

http://www.max-realms.com/modules/newbb/viewtopic.php?post_id=1402

(copy paste: In the maps roll out, drag the diffuse map down to the opacity and make sure it copies it. Then on the opacity material, change the mono output to alpha. Also, make sure on the diffuse and opacity that premultiplied alpha is not ticked, that can mess it up sometimes)