I should have added above:

Regarding the transparent .png's

I have tried everything I can think of, used my own graphics, used professional graphics, changed settings... they all come out with the same result. A light blue blackground where it should be transparent.

Transparent .gif's work, but I refuse to use them as the quality of the graphic is poor(jagged edges, incorrect colours, etc).

I hope there is just something I'm missing.

Thanks.