If you save 8 bit PNGs (with alpha transparency Ė which is what makes it different from GIF) IE doesnít show a blue background. Rather, it does show the semi-transparent pixels as completely transparent. That's basically kinda like a GIF then and not what it should do either but it could save some headache when itís not that important to have alpha transparency.
Iíd like to see you getting a drop shadow that allows different backgrounds to shine through with a GIF image. To get true alpha transparency in IE 6 you can search the web and find numerous solutions. My latest development with transparent PNGs, and one of the most challenging sites I had, is this website
. If you study the source code youíll notice an alternative stylesheet for IE 6
with a lot of weird long rules in it.
Search the web for ďIE PNG transparencyĒ and youíll find ways to get alpha transparency in all browsers.