having problems with built in bumped specular shader

I am using unity 4 free and trying to get the built in bumped specular shader to work right. I am using a .psd file with the color info in it plus my spec in the alpha channel. However, it does not appear that the alpha channel spec is working. The highlights are not reacting the way they should. I even went as far as using a writing my initials in white on black for the spec in the alpha channel so it would be obvious if it was working. But I don’t see that.

Below are screen shots of my texture and materials. the red circle on the material is approximately where my initials should show up, but they are not. Neither here or in the actual model.

any thoughts of what I am doing wrong?

First thing I’d suggest is to see if Unity is finding it. Select your material in your project tab, and above the preview there is a little button you can hit to switch between RGB and the alpha. If there’s no alpha there will be no button. You can also tell it to generate an alpha from greyscale to be sure it’s not a shader/rendering problem. If it’s just not finding the alpha channel, I’d recommend trying another file type. I tend to use .tga myself.

I always keep my PSDs in the project and never had this problem. I guarantee this is not a ShaderLab-forum-section relevant issue.