No, No, children, do not use OpenGL. I never have but I'm sure its complicated. What you need to do is use the BitBlt API call. Read up on it (ie obtaining the Microsoft SDK by searching for BitBlt at www.microsoft.com/vbasic/ (actually, that is not the URL, but it was the old VB page and should take you to the new)). You can make the white parts of the image transparent by ANDing it over the other image or you can make the black parts of the image transparent by ORing it onto the other image.

-Adam