Thanks Gello,
I think it was a problem with PaintShop pro not saving the alpha channel properly. If anyone else has that problem what I did was:
1. Use PSP to create/modify my image then save it as a tif file.
2. Open the .tif in gimp (
http://www.gimp.org/)
3. Save it as a .tga using gimp (and make sure you unclick RLE compression when it prompts you).
My unit bars will be coming up soon!