Hello again. Hope you are not sick of my bug reports

It just means we are using your product a ton

Here is a sample of my font where all I am doing is pressing the +1 transparent border button. It is a 64 point font that ended up at 2048x2048 texture size.
Don't mind the different image sizes, I just took a screen shot at slightly different zooms. You can see the transparency decays. It also got yellow if i added more and more padding.
It turns out, I think, that this is caused by running the padding command while the image is in PVR mode. Switching it to true color, and then doing the padding and then switching back solved the problem.
So this is pretty minor if you know how to fix it, and pretty annoying if you do not

On a side note, I had to add 3 padding spaces to get rid of crud on all the letters. Not sure why but likely related to a 64 point font being shown at a small font point and the downscaling algorithim.