I'm so busy with all my Omega Core plugin coding and getting back to polishing my demo game Rescue the Princess that I don't have much time to spare for making tutorials and stuff like that. However, when I get a chance I'll attach a sample entity that uses the modified shader and one of the stock atlas textures. Maybe the explosion.
The one drawback to this is that it is a continuous looping animation. The problem with things like explosions is that they should be one shot effects with a beginning and and end. Even if you were to hide the explosion entity, there is no guarantee that when you show it that it'll be at the first frame of the animation. And then you have to hide it again strategically on the last frame for best effect. This technique works best for continuous looping effects such as fire, smoke, etc.
System Specs: OS - Windows 7 Home Premium 64-bit SP1, CPU - AMD Phenom II X4 945, 3.0Ghz, RAM - 8Gb DDR3, GFX Card - 2048MB NVIDIA GeForce GT 640, FPSC-R Version - Beta 1.0071