Skin with Team Color Problem

[Panguino]

Here is my problem, I have a model, It has a skin/texture with alpha. I want the team color to show through were its alpha is. Here is the code from the mdl file that i convert to a mdx.

Textures 3 {
	Bitmap {
		Image "goomba.BLP",
	}
	Bitmap {
		Image "",
		ReplaceableId 1,
	}
	Bitmap {
		Image "",
		ReplaceableId 2,
	}
}
Materials 3 {
	Material {
        Layer {
            FilterMode None,
            static TextureID 0,
        }
    }
    Material {
        Layer {
            FilterMode Transparent,
            static TextureID 1,
        }
        Layer {
            FilterMode Blend,
            static TextureID 0,
        }
    }
    Material {
        Layer {
            FilterMode Transparent,
            static TextureID 2,
        }
        Layer {
            FilterMode Blend,
            static TextureID 0,
        }
    }
}

I have tried different combinations of transparent Blend and None, to try to get it working but I only come up with 2 outcomes, all the areas where I wnat the team colors are A. invisible/see through or B. Black like the original texture. I was wondering if anyone could shed some light on the subject.