Transparency Help Needed

I can do the regular transparencies in ps and import them into sl- and use solidify c to do away with the white halo .... what I'd like to make is shadows with a transparent background, or anything that has a fuzzy edge, can anyone list the procedure or point me in the right direction?

If I understand you correctly, you're looking for a way to create a texture that is a shadow, right? Like the shadow under a tree that you can see the grass through? Easy. In Photoshop, fill a layer with black or another suitably dark color. Then create an alpha channel and fill it with about gray that is 50% gray or less (you'll need to experiment with this to get the effect you want). When uploaded, that will make your dark texture translucent so will see the grass through it. Making the alpha channel gray less than 50% will make the shadow lighter. If you want a mottled effect, so that the shadowed area looks like light filtered through overhead leaves, you can play around with filters and blur on your texture layer.

If aren't talking about making a whole texture that is a shadow, but just shadowing the edge of another texture, that answer is still to mess with grays in the area between the white (opaque) and black (transparent) regions in your alpha channel. Apply a gradient so that the "black" area starts out as 50% gray and grades into pure black away from the boundary. That will make the shadow fade away from the opaque part of your texture. Then, as described above, you will need to draw a shadow on your texture layer too (or maybe apply a drop shadow), so that there are actually pixels to see when the texture is viewed in world. This way of making a shadow will take some artistic skill and some fiddling to keep it from looked faked, but it's not technically diffficult.

I'm assuming your talking about on clothing textures? This is pretty easy to do. Let's say you're doing a shirt texture and want to have a soft drop shadow under the bottom to give it a bit of depth. Use whatever method you prefer to create the drop shadow on a transparent layer (painting it by hand, using a layer effect, or whatever). When you're done creating the textures, merge all your layers (but not the background) so that you have a single layer that includes your opaque, transparent, and semi-transparent areas (such as a drop shadow) in a single layer. Load the transparency of that layer as a selection, then save that selection as the alpha channel. Deselect, run solidify on the layer, then flatten it to the background. That's all you need to do. Your saved alpha channel will include your shadow. This same workflow will work for any fuzzy edged transparency.