Send me the image with the alpha and I'll take a look.
JF
Same problem causes that i started with Grass/Fur generator... I needed grass...
Try this One and set it as to be parametric on surface....
Christiaan... uppload that yours for them, so they can find problem...
How did you apply it?... What are your settings of material?...
It looks to me like you have your alpha inverted and the part you are seeing is the opposite of what you want. The best way to do this is make sure you are using an RGB Alpha, don't try to chroma key using a JPEG it will always leave you with artifacts. I have attached a modified version of the file you sent me so give this a try.