Ploink.

The process can be done differently but this method is the way I got it to work (and with less headaches along the way). Stick with it and you too can have your very own Gobbo looking forlornly at your teammates and enemies!

Gobbo Example: http://www.siflige.com/opticnerve/stuff/GobboInvadesTF2.jpg

Step 1) Download VTFEdit (http://nemesis.thewavelength.net/index.php?c=238&o=0#c2650) and then download the VGUI folders (thanks Crawlius: http://www.siflige.com/opticnerve/stuff/VGUI.rar).

Step 2) Install VTFEdit and then extract the folders and content from the VGUI.rar file to your \team fortress2\tf\materials directory (ie. D:\Steam\steamapps\OpticNerve\team fortress 2\tf\materials). There should now be a VGUI folder in the materials folder.

Step 3) With an Image-Editing program, (Photoshop CS, Photoshop Elements, Paint Shop Pro) resize whatever image you want to use to one of these pixel sizes (64, 128, 256). For example, mines was 256x256, but 128x256 or 256x64 would also work and the DPI needs to be 72 (should be that by default).

Step 4) Save the newly resized image into a 24bit or 32bit tga and place it anywhere.

Step 5) Open up VTFEdit and locate that .tga image you just saved with the File System browser (do not open it via the menu or icons).

Step 6) Untick "Resize." Since you already did so with your image editor, there's no need to tick this. Besides, it stretches out your image quite a lot.

Step 7) Click OK and then click on the Blue Floppy Disk Icon to save it into your \team fortress 2\tf\materials\VGUI\logos folder.

Step 8) Start up TF2 and go to Options > Multiplayer. Import that new .vtf file you created and it should now appear on the list of paintsprays you can now use.

If any of you are having any problems or can't get it to work, feel free to message me.