Here it will be explained how to set up an entity with a translucent material. There is a lot of differetn techniques and programs that can be used to make the images used in this tutorial, so the focus will be mainly on using the engine's tools.

1) Setting up the model.
First of all the model needs to be be set up and have a diffuse texture set to it (more info here). The file we have are:
transbox.dae
transbox.dds
Now we open transbox.dae up in the modelviewer and will see:

The files we have are now: transbox.dae
transbox.dds
transbox.mat
transbox.msh
the “.mat”-file is generated by the modelviewer and is a solid material based upon the name of the diffuse texture (here “transbox”). Modelviewer can add further texture such as normalmaps, specular, etc if the files have the proper prefixes (for a list of those see here).
The “msh”-file is a binary version of the dae file that is much faster to load. No need to worry about that one in this tutorial.

2) Changing to translucent.