My understanding is that while IE Win supports the display of PNG files, it doesn't support any of their transparency features. If you want to use transparency for images in a cross-browser safe way, GIF is really your only option. I wouldn't be holding my breath for IE to catch up either ...
PNG-8 works fine (1 bit transparency, like GIF) in IE. It's PNG-24 (8 bit transparency) that IE struggles to understand, but there are tricks that can be used http://www.alistapart.com/articles/pngopacity/
Depending on your needs, you can also just use a PNG-8 and then replace it with a PNG-24 in capable browsers (either via javascript or purely via CSS, e.g. http://www.splintered.co.uk/experiments/19/ )
Patrick _____________________________________________________ re�dux (adj.): brought back; returned. used postpositively [latin : re-, re- + dux, leader; see duke.] www.splintered.co.uk | www.photographia.co.uk http://redux.deviantart.com
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