Need to import a graphic that contains an alpha channel.

In Photoshop I discarded the background layer, than saved the file as
a PSD file. Imported it into Director and sure enough when I put it
on the stage the graphic was transparent in those areas that were
supposed to be transparent.

Problem is there are lines in this graphic that slowly fade away to
nothing. Used a layer mask in Photoshop to create this effect.

In Director, the faded region shows up as grey against the stage's
black background (the background has to be black).

What can I do that would make the lines fade away into the black?

Dena