staarmart, his issue was with making the grey side of his mudbank a transparent alpha layer.
I can see you've got photoshop from the eraser brush, so here's what you do.
in the layers menu, click the channels tab and click the add new layer button (alpha1 appears)
paste your bud bank image into the alpha channel, and make the mud bit white. make the see-through bit black.
If you don't understand what I'm saying, you should look in Tutorial City at the top of this forum, it definately has a Tutorial on this.
"It's often better to keep your mouth shut and let people think you're an idiot, than to open it and confirm their suspisions" - Noel Coward