Custom Textures and Hammer - WTF?

Turns out the solution to the problem was a bad .vmt generated by saving my textures to the wrong directory. For those getting here looking for a similar issue and solution; make sure your VMT points to the correct directory, in this case, mytextures/ .

Below is the original issue, in which you can generally glean how to make a custom transparent texture for use as an overlay in a source map:

Hey there!

Before you link me to like 8 threads that all solve my specific problem and/or ban me, clicking the search link gets me

For whatever reason.

I’m making a map for TTT that will involve some BSPZIP’ed textures for some stenciled writing. I’m having trouble getting hammer to recognize/parse/not be retarded with them.
I’m running Windows 7 x64, Have Adobe Photoshop CS5 x64, VTFEdit, And Hammer configured for Source 2009 - HL2: Episode Two.

Here’s the texture in photoshop - RGB.

Here’s the texture in photoshop - Alpha.

(The mild weathering is intentional - The stencil is supposed to look worn.)

I exported the file from photoshop as a TGA as Photoshop x64 does not work with Nem’s VTF plugin.

I imported the TGA in VTFEdit. Here’s what I get.

And here’s my import settings.

All right, looks good so far. I export my VTF with VTFEdit, and it autmagically creates this .VMT file.

(I have no idea what it’s supposed to have, VDC/Google results are clear as mud.)

I copy both to my EP2 Directory so hammer can find them…

And load up hammer.

This is what I get.

Please tell me how to fix this retardation.
Thank you!

[editline]27th February 2013[/editline]

VTFEdit generated the wrong directory for the VMT because I’m saving it to my working directory.
Let me fiddle with it.

The basetexture path must be “mytextures/SD_Sign” in your case.

Yep, got it working. Thanks!

Hint: To get rid of the white glow around the edges, add borders in the same color to the text. In combination with the alpha map, it will look as it is supposed to.