On the other hand, if it's a true alpha channel you want and not simple transparency you need to use the following code:
Set Image Colorkey Red, Green, Blue
Load Image Path, Number
Texture Object Obj Num, Img Num
Set Object Transparency Obj Num, 1
The RGB value for the colorkey is the same as the one you used in the alpha channel so it must be a grey colour. For example if you used 128, 128, 128 in your image then you'd have a nice translucent image. Also, alpha channels only work for PNG, TGA and TIF files.
Using your above example, I'd put something like this:
Set Image Colorkey 255, 255, 255
Load Image "Image.png", 1
Texture Object 1, 1
Set Object Transparency 1, 1
"Computers are useless they can only give you answers."