Creating a leaf material that shows transparency from UV image (Blender Internal) I've run into a complication when creating one of the trees for a location. I am not sure how to really ask this question without this picture:


As you can see I have a UV leaf texture that I want to apply to the rectangular generated leaves from the tree. When I put this into the texture tab it shows the leaf in the rendering, but keeps the white space that fills the rest of the rectangular shape. 

Is there a way to eliminate this white space between the leaf and the edge of the rectangles to have it look like there are leaves on the tree?

Thank you for any help and suggestions.
Either use these material notes. Or use blenders addon that imports images as planes and enabling transparency on the left