The original tutorial waaaaay back on Alcugs, has you create the plane, the rotate it so that the normal face Z axis us pointing in the negative direction first (down) (means you need to be in Edit mode with the Normals On).
Then move the plane ever so slightly down (towards the negative) along the Z axis.
Then leave Edit Mode and rotate the object so that they Y axis is pointing straight up.
I've found if I don't follow this EXACTLY (including moving the plane slightly in the negative Z direction) that my sprites do NOT work.
Here's the link to the Alcugs tutorial:
http://alcugs.almlys.org/AgeSprite