I actually have Photoshop, but downloaded Gimp a while back. Somebody was really frustrated, because they couldn't add an alpha layer. I never figured it out. Use Paint.net it is much simpler, and just as effective. The alpha layer is for transparency, and in some cases team colors. Open the X-wings .dds, you'll see the team colors in the alpha layer.
Adding alpha layers with GIMP is easy, I figured that out which has allowed me to do the icons. The main problem as I said is the red tinge. Getting my new icon on the structure is easy, I can do that, it's just a matter of getting rid of the red.
Any more thoughts guys? I really need some help here.
Never mind, I figured it out for myself. Woohoo!!!!!!!!!!!!!!! :D