alpha images not being read in blender

this is an odd one, but i have a texture which has an alpha layer on it. in the preview window it shows the alpha layer, however in the uv editor window, it shows without the alpha. i can't figure out where the problem is - if anyone has any suggestions, it'd be appreciated. here's the screenshot

http://officeofthedead.net/temp/alpha.jpg

Check the video tutorial04, I explain everything there is to know about transparent textures...

i was working through tutorial 04 when this came up. if you look at the image i have below, it seems to be with blender - even through the preview shows the alpha layer as transparent, as shown in the original post, it's not in uv editor or in the render. i did change the transparency and believe i did it correct. i have a screenshot below.

http://officeofthedead.net/temp/value.jpg

Have you follow the steps that Im doing on the boxes in tutorial04? Cuz I can assure you that this is working correctly...