I've seen the sample picstures of what AIL can do, so I know this has
been done, atleast some way.

I'm trying to use Effect_OverlayPicture, and trying to put one image
on top of another with a transparent background (similar to the
FreeImage Composite function).

I can load an image, and use: Effect_SetTransparentColor hImg,vbWhite
and stream that back to the browser as a PNG, and everything's cool,
but when I do this:

IO_LoadImage strPath,hImg2,IF_PNG
Effect_SetTransparentColor hImg2,vbWhite
Effect_OverlayPicture hImg, hImg2, 0, 0

the background on the second image (hImg2) is white, no matter what.
I have even loaded transparent GIF's and transparent PNG's into hImg2
and the backgrounds are still white.

Any help is appreciated.
-Michael