Are you working on an image that supports it? Such as gif or png. Remember, you can't have transparency in jpg's. Edit: I said you can have transparency in jpg's....which of course I wrong. Typical me to typo that.
(Edited by pleaseremove at 2:03 am on Mar. 25, 2006)
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Anyone who isn't confused really doesn't understand the situation
http://craigk.org/pictures/
Can you work out the code?