ok, not sure if that is what you want...
I review the code... so badly programmed though :(
it would take me week to debug it and fix everything...
anyway, first with the commentary:
1. Use CONST for the transparency GWStyle color; this will help you avoid using different color in different place of the code.
2. NEVER.... EVER.... use "END" statement. this is real bad programming. I didn't fix it though.
End is like "asking windows to CRASH the program, no matter what is currently running or opened"
you should always use the Query_Unload, and the Unload method and the "unload me" or "unload formName" directive
3. always CLOSE open file after you processed it. I saw some "close" directive at the EXIT menu.
from program in post #9, I added a command button on form
and I added a Layer Menu.
first, open your PSD, then click the Layer menu, then you'll see the Exit Button is still visible.
I'm not sure what else you wanted to achived.
Like I said, to my knowledge, it is NOT possible to use AlphaTransparency for this kind of use. You can only use "regular" transparency
a similar program I made and showed on post #12 is using regular transparency png.
http://VbNetMatrix.com/Download/SampleCode2.zip
*sorry I don't have the attach file function from my side*