That is correct.  Here is what I have tried.

1.  Setting the form opacity to something like 30%.  When I do this all
the controls that get written to the form are also opaqe.  That should
be fine for the controls that I will put as they will be images but the
text should not be opaqe.

2.  Setting the transparent key on the form.  This kind of worked the
problem is that it then did not blend in with the background.

So, in the long run what I am trying to do is create a form in which I
can draw the objects like in the image from my earlier message.  with
the text not being opaqe.  If I have close buttons, etc I want them to
be opaque until the mouse moves over them in which they should brighten.

This is what I am not sure if it can be done.  I am open to other
technologies not just .net it's just the one I am most familiar with.  

Also, if this could be accomplished via skinning or something like that
I would appreciate any pointers.

Thanks.