[haro41]

ok folks i figured out the solution to this problem. 24 bit png's have the ability to save with alpha channel transparency.
i can teach people to do this in paint shop pro 7:

to save your png with this feature activated, you need to have Paint shop pro save your LAYERED image with the PNG optimizer. by layered i mean that there is no background to your image. this is represented by a checkered pattern behind your image.

choose:
File > Export > PNG Optimizer

then click the second tab caled Transparency. you want to click the 3rd radial button called "Alpha Channel Transparency".
then on the 2nd set of buttons choose "existing image or layer transparency".
then choose ok and you should be all set.