Fixed:

Two things:
Your shader had an opacity set to '98' this should always be 100 unless its like see-through glass, in that instance any semi-transparent objects (not in this model's case) would need to be a separate mesh
For the specular map it does not need alpha channel, only the Diffuse color texture will utilize this:
Simply choose the 'none' option if it default to Image Alpha
Bonus fix:
I noticed the shading for the model was incorrect due to the normals, for example at certain angles it render with black shading:
It should look like this after I re-imported the model from blender with correct normals:
You can follow my tutorial here for this process:
This tutorial is included in the Mod creation section but is applicable to track making section as well. Preface In this quick tutorial I will go over the core steps to take the models you create in blender and export them correctly for use in 3ds max 8 where you can create the PAS files to...
www.adrd-forums.net
Attached to the post are the files I used + the psg script I modified.
I named my model something different in 3ds and used a different environment map use but you can change it if you want, also in my script instead of calling the entire PAS model I called just the model (this is especially useful when your scene has multiple models used in different ways)
Also, I made sure the population switch had an empty mesh as well so if the player switches models off it won't crash the game.