I didn't really wanna post about it, as I know there's quite a few posts about transparency. But based off what I read, I don't see why this is acting up the way it is.

Here is the original image:

http://i29.tinypic.com/ngzsco.png

Here is the image in the skin editor as a label set to transparency:

http://i32.tinypic.com/fnsk5g.png

Note that it's on top of another label as well, and original image is obviously transparent, why am I having this issue? Sorry if I simply missed this somewhere else.

I also should mention the gray area is added as soon as I add the image, so I'm not sure if it has anything to do with it's placement at all really...