R@nSiD: Thanks for the reply. I havn't used any Photoshop files but I'll try and keep that in mind.

happymat27: I hope your right because that could very well be the issue. I am applying the texture to an object that has been beveled. I created the tunnel from a primitive poly cube and then did alot of extruding, deleting faces, merging verts. Then I applied a planner texture map to the bottom row of faces (near the road) and textured. Then I went and did some beveling, and afterwards tried adding texture to upper faces and that's when it goes transparent and your right, only in the view screen. When I render it out, the faces aren't transparent, it's just in the work area. Thanks a heap!