An illuminating sight is a little bit difficult, but fairly easy to do if you know how. All sights must be a multiple of 64x64, such as 128x128 or 256x256, etc.
Take this one for example. I'm not sure whos it is, but its a good one.
An Illuminating gunsight must have two files:
sight.bmp, and an alpha sight
sight_alpha.bmp

This is the first file. Lets call it gunsight.bmp. It has the orange color around it to give it the illuminating effect. Make sure your background for your illuminating sight is this orange color. The actual gunsight that you see is the yellowish color. Use it for your gunsight. What I do when making a sight is to erase everything except the center dot, then design my sight around it.
Here is the alpha. It is the gunsight you made, but with a black background. It will be easier to get it to work if you just use paint for this one and save it as a monochrome bitmap. Doing that should make it black and white. If not, you'll have to do it the hard way by making the background white.
Next, place BOTH files into the C:/Program Files/HTC/Aces High II/sights folder. When in game, use the regular bitmap, not the _alpha file and it should work fine.
Edit: Im not sure if this works anymore with the new gunsight setup.