I'm not exactly sure about this, but I believe that the first two colors of the palette are transparency. One is the weird blueish-purple and the other is pure black. Make sure you have both in there.
I know when I make tilesets, I draw them with black as the transparent color.
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<a href="http://www.thejohndenleyband.com">The John Denley Band</a><br><font size="2"><i>You never know.. but you usually do.</i> - another one of Ben's many, but not necessarily wise, sayings.</font>
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