Unity 3 Particle Tranparency

Ever since the move to Unity 2.6 my particles have all been rendered as semi-transparent squares,
the transparency doesn’t work right, no matter what shader type I choose (particles/additive (soft) or any other).
I assumed this would change in version 3 but it hasn’t,
so there must be some setting here that is out of whack. What could it be?

Once again I find the solution after posting, the default normal map setting seems to be kind of a nuisance.
After deselecting generate normal map on my texture it seems fine.