I shall try. The really messed up thing is I've used texture packs, even some used by OP, and they work just fine.
UPDATE: Yeah, 1.7.550 works fine. Sucks, but i dont mind having multiple installs.
So, I've tried everything. My emulator is up to date, the settings match, I've even tried the PAL version just so i didnt have to rename the folder, and the textures are STILL transparent.