[2674-screen+shot+2012-08-11+at+17.01.55.png|2674]Hi guys. I basically created a plane and have stuck a material on it. I am using the Soft Edge Cut out as the shader and the black on the outside of the image is semi-transparent. This screenshot shows what is happening (the cat is material for the plane).
If you don’t need the image to be lit by lights, try using the Unlit/Transparent or Unlit/Transparent Cutout shaders. It looks like Soft Edge is treating the outline as half-transparent.
Also check your image and be sure Alpha from Grayscale is UNchecked.
Edit: Oh, and if you’re using Alpha from Grayscale to force the black to go invisible, well… stick that image back in an editor and delete the black background. PNGs can naturally handle transparency, hopefully that’ll work for you.