Hello there! I've been trying your Tools since one or two crashes and I've got some suggestions to include to your promising tool
Here is a galery that illustrates the ideas : http://imgur.com/a/tWcLE
- In the texture settings, put the Filter Size to its minimum (0.10), it avoids getting weird artefacts around the transparent parts (refer to the first and second image in the linked galery,
- Another idea is toggling the Z-Transparency on, to allow transparent parts to overlap opaque ones without having a visual "hole" in the result (refer to the third and fourth pictures)