HUD doesn't work properly

I have strange problem with texture of my HUD.
On picture before exporting to VTF it looks like that:

But after exporting in-game it looks like that:

http://a.imageshack.us/img815/9895/fails.png

If you send me the PSD, I will get myu friend to do it for you, add me on steam.
Steam: samwilki

Which format did you use for compression?

You are using Photoshop? You have to create an alpha layer not just alpha in the actual picture, it doesn’t work like that.

I fixed it

Also now that we are on this topic, have anyone gotten VTFEdit to not convert circles into a rough peice of shit?