Yup, I use Elements 2.0 as well. I had planned on getting photoshop, but realized that for what you need to do with game texturing you really don't need it. If you're short on cash the GIMP works just as well, though (find it at gimp.net). I don't use it simply because I have elements and don't want to learn a new program, but I *do* use it for making alpha channels because if Elements can do that I'm just not patient enough to figure out how .
The nice thing about Elements is that most photoshop brushes and other things are compatible with it.
Hey how do you edit the alpha's in photoshop 7.0 , I use to mod The Sims when I was like 10 to 11 and I used photoshop 4.0 and it was just really easy with it, but with photoshop 7.0 I havn't a clue.
you dont export tga's you do save as and save them as tga files. also for alpha channels go to the channels panel in the layer panel and the parts that you make white are parts that are see through.