Just setting an alpha on the material seems to have an issue with z sort
4 spheres
var ballMat:ColorMaterial = new ColorMaterial(0xffffff,0.8);
var ball:Sphere = new Sphere(ballMat);
ball.position = camController.camera.position;
ball.moveForward(300);
scene.addChild(ball);
var sMat:ColorMaterial = new ColorMaterial(0xff0000,0.2);
var s:Sphere = new Sphere(sMat);
scene.addChild(s);
var s1Mat:ColorMaterial = new ColorMaterial(0x00ff00,0.2);
var s1:Sphere = new Sphere(s1Mat, 100);
scene.addChild(s1);
var s2Mat:ColorMaterial = new ColorMaterial(0x0000ff,0.2);
var s2:Sphere = new Sphere(s2Mat, 150);
scene.addChild(s2);
If you rotate the camera so the white ball is just behind the outer blue. The center red sphere shows through.
http://www.shrewballooba.co.uk/Alpha/