I used GIMP in color index mode to properly set up the index value for the magic pink color. So the issue wasn't in the texture at all.
I resolved the issue a few moments ago, and figured out what the issue actually was.
Apparently, in the .wld file in global_chr there is a value to hard-disable/enable transparency on the helm3 file. I used
This WLD Editor Suite to peak into the file.
Particularly, I looked at the visibility value for the Half Elf helm which I know has transparency. I simply copied the visibility value from Half Elf helm (helm24) to the Wood Elf ornament file (helm3). Upon logging in I was greeted with much success:
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