Couple of things to check:
* Open the new image file and go to the Advanced tab in the dialog. Set 
Extension to "png".
* Set the image node name to "nav-alu" without extension. Initially the node is 
named "untitled".
* In your theme configuration, make sure the CSS style sheet references the 
correct sheet if you changed the sheet name. The sheet location is in the 
"link" property.

--Antti

-- 
Context is everything: 
http://forum.magnolia-cms.com/forum/thread.html?threadId=1e952656-9a2d-4165-abec-b975d58be518


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