I appears that only certain parts of the mesh are marked for transparency. For reference, I made the entire torso part of the knight set transparent (including the arms) and only the scarf piece became entirely transparent: http://puu.sh/1acFa.jpg This makes sense, because only that area had transparency in the first place. The only conclusion to make is that the capes are probably split separately in the mesh, and only one part is marked as being able to accept transparency. Looks like I was just fortunate when I added transparency to the Crown of Dusk.
