The issue of PNG and IE have existed ever since I started designing for the web several years ago. Moving into the Drupal realm, it was a major issue when dealing with dynamic, sleek designs.
For those of you who don't know the issue transparencies can be used with the PNG-24 file format. However, while IE allowed for PNG-8 transparencies, it failed for a long time to deal with the more sophisticated PNG-24 alpha transperency feature.
With IE 7 they resolved this issue,...