Transparency help

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When I tried to open some of the files from Wild Frontier (iPhone), the preview of the images appeared how they are in-game (normal), but when I opened them in paint to compile them into a sprite sheet the colors in the images blended and stretched outside of the image (not normal).

My only guess is that it is a transparency issue. I unfortunately don't have photoshop, but if there is another program that could substitute for it (or photoshop isn't needed at all), then that would be great. The problem has been happening with a few other iPhone games too.

Any help is greatly appreciated. Thanks!