Thanks for your reply's.
The Image is square. I made a "New" Image at 256px256p @ 72 dpi, RGB-alpha, 1 layer. I then "saved as" TarGA with the following file name ArmAUSMCG.tga. I then tested this image by opening it in Gimp as well as JASC Paint Shop Pro and Macromedia Fireworks and there was NO problem. I then attempted to open it in TexView 2 and I get the error pictured below. I'm thinking it has to do with Alpha Channels and or 24 bit vs. 16 bit. Not sure.
Can anyone help me get this TGA File into a PAA format?