Here is my setup:
Borderless form with backgroundcolor = transparencykey
single docked picturebox control hosting a PNG with transparency

It's doing what I want except for one small problem:  The alpha on the PNG
seems to only work as a simple bit mask - that is, it's either 100%
transparent on 0% transparent.

Here is a screen shot (blown up a bit) showing my problem:
http://www.pmddirect.com/temp/alpha%20no%20bueno.png

the green color is what I don't want to see.  In Photoshop those are
anti-aliased pixels that soften the edge of the image.  I don't understand
why I can't get this to work.

I have googled and read a couple posts from different people, some code
project articles, etc but haven't found anything addressing this exact
issue.

Thanks for any help,
Steve