When I use an image for a character sprite, the transparent outer of the sprite is still considered part of the image and used for collisions. Is there a way to not have this happen?
Remove all entirely transparent rows and columns pixels from the edges of the image. If you do not have a way to do that, download my Image Transparency Adder/Trimmer scenario and use it. All you need to is run the project, browse to select the image, load it and immediately save it. Any excess transparencies will be removed automatically.
Ahhh so my transparency was fine it's just that Greenfoot still wants to put the image in a box so you can't have a concave area that isn't detected as part of the object. I managed it better though by taking your advice and trimming all extra area that was transparent. Thank you!