Zandronum

It appears that a lot of the monsters on realm 667 have transparency on the sprites which when loaded in XWE just converts the transparency into black. Is there anyway to have the sprite be transparent without having to open up every sprite in paint and adding cyan to the transparent parts?

Thats just XWE's fail way to render png images, try in-game the sprites should look fine. actually if you make the transparent areas cyan you'll have to convert the image's to doom format.

Anyway why not use slade3 in this part of modding. XWE has no advantages over slade in this regard.

In game a black box appears. And I would use slade but the installation process is a drag.

Well, Slade's well worth the installation process. Since it does much more than XWE and can handle transparency no problem.

xwe'S development has halted years ago, as such it lacks support for modern stuff like PNGs and pk3 files. I know its hard to make the switch at first but it wil tottaly be worth it.

...You don't even need to install Slade, there's a ZIP download somewhere in their website.

As everyone and their dog is saying; Get Slade, you won't be sorry.