--- Operating System, Graphics card ---
Debian Unstable AMD64, Intel Graphics
--- Blender version with error, and version that worked ---
Blender 2.68.5 build from Sunday 15th Sept
--- Short description of error ---
Halo materials render as flat-coloured blobs if Alpha in Render Shading panel is set to “Transparent” rather than “Sky” (BI renderer).
--- Steps for others to reproduce the error (preferably based on attached .blend file) ---
The attached file is a simple halo-material example. As provided, it renders fine. However, go to the Render context, Shading panel, and change the Alpha setting from “Sky” to “Transparent”. Now if you render, the formerly intricately-detailed lens-flare effect is replaced by large, ugly blobs of flat colour.
Description
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It's a display thing, if you set it to show color + alpha in the image editor you will see the render is correct. When you set it to color, it will show you the color of the pixels with alpha removed, which can look a bit strange but it's not wrong.