>>One of the samples in Visual FoxPro 8.0 shows how to do that.
>>George
>
>BTW VFP7 Solutions Samples include the sample too.

Nope, that's a different example: it shows how to create a form with varying levels of transparency. The example that shows how to create a form that acts like it isn't there when it's transparent is only in VFP8. (Create Irregularly Shaped Form)