Please respect new people - everyone's new at one point!
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The link isn't working. =/Oh wait it is. Lemme have a read.
Great to see someone's putting so much contribution into this project.
^There's also a technique in photoshop you can use called "Save For Web". You can select the best PNG option (png 128 dithered or something like that), and tick a transparency box. That way, you don't even need Iaza to transparentise your pic. Not really a sprite-y thing, but it applies for photoshop users who want to transparentise a pic more easilly.