Texture help please.

I am very new to texturing games and have done a little for Spintires Mudrunner so thought I would have a go at RBR, and replacing a window crack texture.

I follow the same procedure of creating an Alpha Channel in PS CS5 as I normally do but for whatever reason, I get this: https://i.imgur.com/Ejv7RfX.jpg

1. What is wrong/Why is it not partially see-through ?
2. Is it easy to solve?
3. What settings would I need to set in the Nvidia DDS options upon saving?

Thanks.
 
1.I think it is alpha channel problem, maybe..
https://www.dropbox.com/s/tux5tmwq5ydo03u/1.png?dl=0
On alpha channel, the darker the windshield, the more transparent.

2. open the external_transparent.dds and only turn on alpha channel,
then paint the windshield.
If can not use paint tool,
press the quick mask at the bottom of the palette once and then press the left icon again.
https://www.dropbox.com/s/53edflh7y4ev9mc/3.png?dl=0

3. I saved as DXT5 / ARGB / 8bpp / interpolated alpha
https://www.dropbox.com/s/1tqii82bkyum57l/2.png?dl=0
 

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