have you feathered the outline?
this looks good on JPG, but borkes up transparency (coz the software doesn't know how to cope with it).
You have to have an (ugly) unfeathered cut around them.
Edit: Oh, and woo to the piccy!
(
Zak McFlimby Twibbling @McFlimby,
Thu 20 May 2004, 9:18,
archived)