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Question about Image planes with alphas - image plane plug in

Hi.
Unreal neebie:)
Im in a bit of a pickle with image planes that have alpha channels and are displaying black around the alpha.
I found a great tutorial on how to set up image planes on the camera and its great until i want a plate thats got an alpha.
The character is there but the alpha doesn’t work, its just black.
Does anyone know how to fix this or know of a better way to display Image sequences? I’d really appriciate any suggestions. Its for some post vis work.
Also is there a way to import an image seq that isn’t power of 2? I tried importing my image seq but got errors saying it wasn’t power of 2.
I thought by importing the IP i could change the setting in the texture editor to read the alpha. But no. Apparently not.

cheers