I have a grayscale icon that I'm editing with Photoshop with a transparent background, but I can't, for the life of me, figure out how to convert the icon to one that can be used as an iPhone toolbar icon. If I simply save the image as a PNG, it doesn't show up as anti-aliased on the iPhone because every pixel with color is being rendered as black, instead of a shade of gray.
According to the Apple docs and other sources, there needs to be an alpha channel on the image to specify varying levels of transparency for each pixel. However, I have no idea what that means. I've read these posts and docs from Adobe and I still can't figure out how to properly convert a grayscale image into one that can be used as an iPhone toolbar icon. The blog post is hard to comprehend and poorly written, and the Adobe docs don't really help.
http://cahit.hayalet.net/blog/514/converting-an-image-to-iphone-toolbar-icon/
Can someone point me in the right direction or provide exact, step-by-step directions to doing this in Photoshop?