How to deal with Indexed Textures

[mnsg]

So if I made the mask transparent, it would show the textures normally?

Not too sure.  Not all +2 textures have transparency after all; certainly not Yoshi's egg texture, nor Ganondorf's hand texture.  You can always use the color black for the mask texture parts.

[Kirb]

Step2 keeps telling me the .tga is not indexed, when in fact it is.