yes, i am aware of the other 3 puppet tool options.
tried on a new layer with another jpg image - puppet pin tool works fine.
it still does not work on the png image. this image contains 5 layers, i.e the image was not flattened when i was exporting it from image editor.
i get the same problem with imported psd file of the same image. imported it as Composition. am i supposed to rebuild the picture from PSD layers in AE.?
Not sure what you are doing. First, PNGs can't have layers. They are always "flat". AE should recognize the transparency in 8bit PNGs, but it's not a real Alpah channel, hence 24bit PNGs are preferable. This may also explain the effect not recognizing the transparency in your case. PSDs will of course require to be pre-composed, where appropriate, if you want to encompass everything, not just the parts of a specific layer...
First question, how big is this file? I see no dimensions.
Second question, is it necessary to have the layers in this image? It looks like you are applying Puppet Pin to the whole fly.
Third question, have you tried reducing the size of the file in Photoshop to approximately the size of your comp and then saving it as a 24 bit png or as single layer PSD or as a tiff with an alpha channel?
It's hard to know because there are no details about eh PSD but it could either be the wrong color space, way too big, or have some other problem that I'm not seeing.
the file was 1512 x 1094
i reduced size to 600 x 434 and saved it as 24 bit PNG with alpha channel - and now puppet tool works!
the reason i want to have layers of this image is because i intend to animate only fly's limbs and at the same time keeping the main body and head completely still.
seems that i can pretty well animate the limbs and retain the still body with LOADS of pin points
the question is answered - i learned the lesson about the importance of file size