Took a look at your skin, and it looks like your alpha channel has gotten messed up. I'm assuming that you're not using PhotoShop, from your comment about going from a .png file to a .dds file - I've never used a process like that so I don't know why you're doing that, but I strongly suspect that has something to do with your problem.
If you can explain more about how your trying to create the skin, someone might be able to give you a hand figuring out where the problem is and how to fix it.
In the meantime, I went ahead and added the stock alpha channel back into your .dds file, so you can see the difference it makes - it's available here (along with a corrected version of your .txt file, so you'll see how they're supposed to be done as well): http://www.mediafire...horrahrafn.zip
Oh wow, Panther, you're a wizard!
I am using GIMPShop, and had to export my work to a .PNG and convert to a .Dds online. I didn't mess with the alpha, but that is probably what happened.
In the link you posted in the other thread, I found a GIMP tutorial that I am reading through to hopefully clean up the surface of the skin so it looks cleaner up close. I had been painting on the Draw Here layer, then adjusting the transparency of the others so it would actually show through. Apparently not how I am supposed to do it lol.
Thank you so much, though I'm sure I'll have more questions later.
Edit: Whelp. It isn't starting off well. When I open the .psd in GIMPShop, it doesn't appear the same as it shows up in the tutorial. Se5 on the left, Albatross on the right.
Apparently GIMP and GIMPShop are different things. Going to install GIMP and see if that helps. Nope! Still different.
It shows up correctly in the gimp preview window, but not when I open it.