It's not really Torque, i'm more certain that it's something to do with Blender and the current DTS exporter
Anything made in Milkshape 3D has a fully opaque shadow unless a material is told to be transparent
weird, i can't see any properties anywhere that might help with that
the red dot lost it too, and the inner barrel. it has to be the texture
not texture related, the optic and the trigger use the same texture, and when i first recognised the issue
weird issue

any ideas?
the muzzle and trigger also have the same texture
i'm guessing it has to do with the scope thing being on a different layer
that'd be the only thing that makes sense
i'm not sure how that got there but normally only the bones and empties are in a separate layer, and in the item model it's all one layer
to be sure though, i put everything together, but it made no difference