There is also code to draw images with transparency in my PalmIshido source code. www.sf.net/projects/palmishido Includes scripts to convert png, etc. It's very hackish, though.
The method used there is that you separate off the transparency mask from the main image. -- For information on using the PalmSource Developer Forums, or to unsubscribe, please see http://www.palmos.com/dev/support/forums/
