thanks for trying guys. The problem was related to the way skinstudio (paintshop pro) was saving the files. When I import the image into skinstudio (vs editing and saving) there is no transparency. I thought I had stumbled on to something but it only works with the skin I was working on. However, there appears to be a way to get the logoff dialogue background to support transparency. I just have to find out how I did it. LMAO. Thanks for trying guys.