While I didn’t have issues with Transparency like FedPete did, I had some major issues with the Skybox showing up in the scene. I am not sure if it was because in the Camera properties I had the lens in Orthographic view from a previous lesson or if it is a Blender bug.
I closed and reopened Blender a couple of times. Redid the Skybox a couple of times. Reset the Camera properties to Perspective and it finally worked. I am using Blender 2.77a; whereas, Michael is using 2.76…there is an additional Setting under Color in my version and not sure what it is for. Linear is default.
The other weird thing is, I loaded the Mirror Ball texture and set it to Mirror Ball and got a really warped background. I finally had to set it to Equirectangular for it to look correct.


