I've been adding custom faces and some don't look like the jpeg. I do notice black is washed out a lot. I have an Nvidia card.
I use one that has a white skull mouth with a black background, it looks fine when I view it in the Arma menu under my profile, but when I play the game and get revived, I can see my face without the black background. All I see is the white skull mouth with a normal face background. Is this pretty normal?