Although TouchBuddy itself supports both of these, TBTk doesnt support "transparency" as such (a limitation of using VB6 to code it in). Unsure if the current development TBTk supports PNG, will have to go check. The JPEG file format does not suport alpha channels as far as I know.
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(Setup: XP Pro, classic mode, LinITX 8" touchscreen (Client/Server), 19" touchscreen (Local), latest development version of TouchBuddy)
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