From: Vi Shenley
The only reason I mentioned haloes is because that is the section in Robin Wood's tutorial that deals with washed-out colors, as he lumps the two problems under the same cause, quote:- 'Halos and washed out colors happen because when Photoshop creates the Targa file, it flattens it first.'
Hmm. It's been a while since I've looked at Robin's tutorials. When I get a little time, I'll head over and take a look at what she meant by that. (Yes, Robin is a she, by the way

) Here's my best guess for now.
If you've got part or all of your canvas translucent in your working document, then when the image is flattened for TGA output, the colors would end up lightening (which could be described as fading or washing out). This is because the flattening happens against an assumed white background. Think of it kind of like what would happen if you were to color a big spot with a red dry-erase maker on an acetate transparency (the kind used for overhead projectors). If you put a white piece of paper underneath the transparency, the spot would look pink, not red, since dry-erase ink is translucent. If you want the spot to be red no matter what is underneath it, you'd need to use a pigment that is opaque, like acrylic paint.
The Solidify filter will take any part of the canvas that is less than 100% opaque, and turn it fully opaque. In essence, it replaces that dry-erase ink with opaque paint, and then spreads the pant around the edges to cover the whole canvas. After that, the assumed background doesn't matter. The colors are already opaque. You can't see the paper through the acetate, so the paper has no effect.
A better solution is prevention; just don't work with anything less than full opacity to begin with. But depending on your particular work-flow, that might not always be an option. Cleaning up in post with Solidify is a fine remedy in that case.
From: Vi Shenley
I must admit that I do not know how to tell if a layer is a normal layer or a background layer.
The way to tell is much simpler than you're probably thinking right now. If it's a background layer, its name will be Background, and it will be printed in italics. If it's a normal layer, its name can be anything (including Background, if you really want), and it will be printed normally (Roman).
Also, for a background layer, all the options at the top of the Layers palette (the blending mode menu, the opacity & fill sliders, and the lock buttons) will be grayed out. For normal layers, the options at the top will be usable (although some options will gray out optionally if you click on any of the lock buttons, since that's one of the things locking is for).
Background layers are always 100% opaque, by the way, which is why you can't use Solidify on them.
Oh, one more thing that could interfere with Solidify. I realize I could have been a little more clear when I said to make sure you've got a layer active, not a channel. What I should have said was make sure all three color channels are active (highlighted in the palette), not just one or two. This will happen by default if you do anything on a layer, which is why I worded it how I did before. But that wasn't really a full explanation, so I apologize for any confusion.
Solidify can only work by affecting all colors at once, since it's designed for use on layers, not on individual channels. The wording of the error message is a little incomplete in this regard. I guess the author(s) didn't figure someone might try to use the thing on a channel. That does make sense, since individual channels can't really be described as "solid" or "not solid", but still, it was a little shortsighted of them not to cover all possible bases in the error message.