I have delved into this transparency issue during the past couple of days. I contacted Marc Emile of Axialis software who wrote the tutorial mentioned in an earlier post and he kindly replied as follows:
Yes, the BMP format supports transparency. However, 2 things may happen:
1/ You do not save the transparent information channel (Alpha Channel). You
must select 32-bit color depth while saving the BMP.
2/ When you reload the BMP, the alpha channel is not loaded because the
software or SDK you use does not support alpha channels.
So it appears that this is possible . I did save using 32 bit color but have nowhere to upload the BMP file I created that has the Alpha Channel loaded. If, Coolbyte, you do not have the necessary software to follow the tutorial I would be very happy to produce a BMP for you to try on the Game. I hate loose ends and would really like to conclude this one as I have spent a bit of time on it and would like to see a positive result. I doubt I shall ever need a BMP with a transparent backgound but there is no such thing as useless knowledge in my book. If you would like me to create the BMP then post here and I will send you my email address by PM and you can send me your logo as an attachment. Ypou can't upload the logo here as the forum does not support BMP format attachments.