I know it does not sound logical, but I have a working setup with ZTransp OFF +( ZOffs=0) for the object to appear in front of the waveset (and passindex=3),
and ZTransp set, ZOffs=1, passindex=0 for the waveset.
Oh, and the object's texture has set Col + Alpha in the Map To panel.
There's just no general rule that works in all cases.