Quote: "Make you piccy in photoshhop/paintshop/whatever with transparent bits, translucent bits, anti-aleased edges - whatever. Then export as PNG and use this rather than a BMP."
BTW, for those without artistic capability but with a mathematical bent, I'm inclined to use a freeware program called POV-Ray for a lot of my graphics. With POV-Ray you can describe items geometrically, apply colors and textures, place lighting and create particle effects such as mist and fire. The results are 2D but it's good for backgrounds. It also supports alpha transparency and can output in .png format. It can be found at
http://www.povray.org.
Lilith, Night Butterfly