Transparency on images

Forgive me for asking a noob question, but how would I get a cut-out image? I've got a pic on a plane surrounded by a alpha background. However, wherever there is supposed to be transparency, there is white. What are the specific import settings I need to use?

Thanks, Elliot B.

You need to use a Transparent version of whatever shader you're using. When you select your shader, use one in the sub-menu titled "Transparent". Each of the materials in this group acts exactly the same as its counterpart, with the exception of adding transparency handling.