Partially transparent texture

First: I am complete newb at graphics, renderers, shaders, textures, etc, so please assume I am as dumb as I sound.

Refer to the screen shot: the bottom half of the “I” in the flag is meant to be a lighter blue than the top. I am attempting to do this by giving a 50% opacity to the bottom half of the ‘I’ when GIMPing it up. As you can see this is not working: the bottom half of the flag is ‘skinnier’ instead of ‘more pale blue’. I have tried different opacity levels, but none appear to work: I either have a bright blue “I” or half-an-“I”.

I am assuming I need to use the proper materials/shaders to make this work. I am currently using a Transparent/Diffuse shader for the material, and I have Alpha-Is-Transparency turned on the texture.

BTW, The contents of this flag are meant to be customized at runtime, so it does contain several materials/shaders, is this related?

You just need a transparency/diffuse shader. Everything else needs to be done inside you Graphics Editing Program.

Search for a tutorial that explains how to make parts of an image transparent in GIMP. Be sure that you save the file as a format that support transparency, such as PNG-24.

Okay, I closed Unity to wait for some people to answer, and when I opened it everything is working.