Ok I FOUND THE SOLUTION!!!!!!
Took getting in touch with a great tech guy, Brent, from Maxon.
You need to:
1. Goto RENDER>RENDER SETTINGS>Output>and make sure your FRAME is set to all frames (not the problem I had, but just in case).
2. Then click the SAVE tab in the Render Settings window.
3. Change your SAVE tab settings to: PATH, fill out the path window to a folder on your computer. Then set FORMAT to QuickTime movie. Then click the OPTIONS button, and set your depth to Millions +. Then make sure you select the Alpha Channel radio button.
4. Then go to FILE and save your settings.
A really big drum roll here as its very very very very very very un-intuitive……you have to use RENDER TO PICTURE VIEWER – not make preview. Then when your video exports, track it down and you have an fine looking video with a bonified alpha channel.
I spent 5 days trying to figure this one out. And I am really bummed to say that no-one on any forum, not on even Maxon’s website covered this problem. I am now clean from any Karma as I have finally contributed to the forum with a solution that adds not takes.
Blessings to Brent, and all the staff at Maxon.
G2 Media Solutions
Creative, Intelligent Media