Yeah, Windows 7 can be tricky with transparency. If you ever need to make your images smaller without losing quality, you can try JPEG Compressor. It helps keep the quality but reduces the size.

Not completely transparent-- I meant images with transparent or partially transparent regions, so the desktop color would show through.

[i]But[/i] it turns out Windows 7 has the exact same problem anyway since it converts images to JPEG. So much for that. And in the end, it's not such a big deal since I can still edit the image to match the desktop color. This thread can be closed.

Ok

I have to ask

Why would you want a transparent wallpaper???
what is behind the Wallpaper to be seen????

Please do not consider my question rude.
It is my curiosity :wink:

When I try to use a transparent PNG image for my desktop background, the image loses all transparency and looks quite bad. I suppose this is because when "Customize Background" is enabled, Dexpot saves a BMP copy of the image and uses that instead.

Is there any way around this? Sorry if this has been reported before.