FYI, I came up with a generic solution to this problem. Put the code below in FixTransparency.prg, then call FixTransparency(This) from the Init() of your CommandButton (or any other applicable) class. Works like a charm!

* Fix Image Transparency
* VFP/GDI+ has a bug where image transparency is not respected on buttons
* The solution is to load the picture in an image control first
* This program clears the image from cache and reloads it in an image control
Lparameters loControl as CommandButton
Local lcPicture, loImage as Image

* Only applies to formats that support transparency
lcPicture = loControl.Picture
If Empty(lcPicture) or !InList(Upper(JustExt(lcPicture)),"JPG","PNG","GIF")
    Return
EndIf 

* Clear image from cache
loControl.Picture = ""
Clear Resources (lcPicture)

* Reload picture in Image control
loImage = CreateObject("Image")
loImage.Picture = lcPicture

* Reset Picture on control
loControl.Picture = lcPicture

>Hi!
>
>How do I get foxpro to use my transparent GIF image in my button , IE it has a white background but when I open it in my graphics package, it shows no background & tells me it is transparent?
>
>Any help extremley appreciated
>
>TAI