>Well, it appears that the image has priority, but it just works differently in 2005 vs 2003. I'm thinking that in 2003, a transparent image caused it to be transparent all the way through, whereas in 2005, it probably causes it to be transparent to the backcolor of the control. If you think about that, it makes sense ... most of the times an image has an actual picture, with maybe a transparent background. When you see through that background, you're going to want to see the backcolor of the control. So, from this perspective, I'd say it's buggy in 2003 and works correctly in 2005.
>
>What exactly are you trying to do anyway? Why do you want a transparent GroupBox?

Ok, but I am curious to know how someone can select the transparent color of a BackColor when the control is a groupbox because whenever I try to set it, it doesn't want to accept it. The message is: "Property value is not valid". This is when I select Transparent from Web under BackColor. Or, is there another way to set it?

The reason to have it transparent is because my application is XP style ready. So, the background of a TabControl is having a gradient color. So, if I put a groupbox control on it, the title of that control and its background won't fit well on the TabControl gradient color.