A little more research and I figured it out. (thanks to Chris Cox at Adobe) Targa files since v7 need to have an alpha channel to carry the transparency. So before doing the save-as you need to select everything on the layer and save it as an alpha. I suppose if you’re doing a slew of PS titles in one doc you’d have to make sure each Targa made from it only has the one alpha channel, maybe a pain in the ass, but using layered PS files and copying and pasting from a PS sequence does not preserve the layer name, so that’s a pain in the ass too.
It is likely that you just put it in the FCP plugins folder, Library>application support>FCP>plugins. If that doesn’t work, you can e-mail Graeme and he will surely get back to you.
Tell me, did you get to the Alex talk? Can you give me the top points you think about it? I judge from the Web site that keying with it is huge, but what other compositing chores can it do better, faster than FCP on it’s own?