Transparancy on forms

[Brett]

I was playing around with the transparancy property in VB.net for a form.
I created a graphic and added it to the form (background image) and set the
transparancy color. Everything worked fine except that I get a ghosting effect
around the graphic. It is very pixelated (jaggy). I have tried creating the
graphic all kinds of ways thinking that it is a problem with the graphic,
I don't think so.

Anyone have any ideas?

Thanks