transparency differences in worldeditor and game?

Have some transparent materials with non zero alpha values. Set everything up in world editor and looks fine... restart and run it in the game and my transparent objects are not visible unless they are in front of an opaque object. Hit F11, select an object, go into material editor, and BAM! everything looks correct again.

Have tried with and without transparent Z write.

Get no errors re: missing textures, materials, etc.

What's going on? Is this another 1.1 Beta 1 bug?