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ALPHA is a drawing tool that can be used to directly modify the opacity (alpha) channel attached to an image. Since ALPHA is a meta-tool, it requires another tool to specify the pixels to modify.
ALPHA_BRUSH can be used for example for skin smoothing to increase or decrease transparency of a layer. ALPHA_FLOODFILL with a LINEAR fill style set to black-to-white gradient can be used to smoothly fade away parts of images, for example reflections.
Find out how Vista icons differ from XP icons.
See how RealWorld Icon Editor handles Vista icons.