I've found the better way to do transparency in FS2002 is to use an extended bmp with alpha channel. The other advantage is that once you've got the hang of it you can apply it to any object you choose and make nice things like towers with (semi) transparent glass and stuff. Also from my recent thread the bmps are smaller and more efficient.
Using EOD the extended bmp of choice - believe me, I've spent hours experimenting on this - is the 16 bit 555-1. You don't have to bother about palettes and pesky 8 bit bmps - you can use 24 bit straight from your favourite paint prog (eg PaintShop Pro).
In your case it's dead easy. Take your person object texture bmp - I give it an 'N' subscript so I know it's a normal bmp eg personN.bmp. Load it into your paint prog (let's say PaintShop Pro). Use you magic wand to select just your black background, copy this and paste it into a new bmp of the same size with a white background. You'll have a 'reverse' silhouette. This will be your alpha channel - black = fully transparent. Save the new bmp - I give it an A subscript so I know it's an alpha channel eg personA.bmp.
Fire up DXTBmp (NOT BMP2000!) and load personN.bmp as a normal bmp. Import alpha channel - personA.bmp and save the resulting bmp as an extended 16 bit 555-1, name is just person.bmp. Job done. Just use it in the normal way in EOD.
The other thing you should do in EOD is treat people like trees - look in options, use soft shading and select 'always turn to aircraft'. That way they'll look as though they have thickness - except vertically from the top, and the only time you see that view is when you're crashing at high speed!
Good luck!
Roger
PS - Oh I didn't mention the reason why this method is preferred. See my recent posting in the Avsim MS scenery forum. Under certain circumstances the simple 'black = transparent' approach as well as some other extended bmps with alpha will give you problems - notably when your object over laps visually with another object you black will become semi-transparent - ie you'll see the black texture around your person in the overlap zone as semi transparent grey. It happened to me with my trees which is how I found out what the solution is!