No, I think you're having trouble with the alpha (transparency) information on the pine needles. TG2's handling of alpha data is a little sketchy - it doesn't seem to handle partial transparency well. Rework the alpha texture and change it to a black and white image, as opposed to grayscale. If that doesn't do it, try shaving back the edges of the leaf areas in the alpha texture, so any areas that were meant to be partially transparent are removed.
By the way, fmtoffolo had a nice pine tree for sale, I think at Renderosity.