Saw this video http://www.youtube.com/watch?v=KNd54jgesgk thought i give it a try seemed like a great way to paint seems.

No setup in this video it just went right into the painting. Is there a vid i can watch that shows the whole process from UV to material and texture file setup?

Got Gimp to open up with the character I am working on (low poly 512x512 targa with stacked UV). Painted on separate layer like in the vid. Saved with transparency same file name. Hit apply In Blender and nothing.

Is this because of the way I have the material set up? Or stacked UV?