(another newbie skinner)

I was trying to make a Han Solo skin for the axis since they have that awesome C96 Mauser.

Everything went fine and then I had this idea to make the helmet transperant so you would just see his head. Which I did, and worked when I started my own server but when I played online the helmets were solid white. Is that some sort of limitation with Source that I could have the transparent helmet when running a local server or did I mess something up?

No you did it perfectly.

but removing a texture does not remove the MODEL :D

You are seeing the model without any texture (because you made it transparent)