I actually ended up fixing the problem by applying the background color to
the whole containment div instead of the individual parts (which seems
painfully obvious now).

Transparent png was still quite large, and of course requires hacking on its
own part to make work in IE. I guess I still need a lot of work optimizing
the site to make it load faster. Seems like Internet Explorer stalls when
trying to load the content from the server, making it initially really slow.
Each thumbnail is about 2kb right now. Not sure if I could maybe get that
smaller.

Thanks for all the help. This list rocks!

Tim
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