I was working with some transparent PNGs and CSS for a round-corner irregular-shape box and got stuck. The IE7 library by this guy Dean Edwards didn’t work out very well for me. Don’t get me wrong, the js hack lib is actually able to fix PNG transparency issues of IE, both PNG used in img tag and background: url(), however, applying it on IE causes my layout to break mysteriously. Gaps are displayed between my carefully placed divs so gone is my design. And I’m using the YUI grid CSS libraries, so you know Y!’s stuff is of pretty high standard. There’s no reason why my layout just suddenly breaks like that. Anyway, weird things happen in IE.
I dug into the new Yahoo! Mail and see what they would do to solve the PNG problem, and Y! dev team were quite nice in their CSS by having comments and opinions too! Check this out…
The Y! Dev Team calls this PNG transparency crap “the [Microsoft’s] insanity.” I second this! Anyway, I was able to fix my box with the M$’s insanity but the absolute URL issue is a small hassle for this paticular template. The CSS @import works so much better because everything is relative to the CSS file, making the CSS really portable and easy to switch.
Until then, the world still have to be stuck with M$’s insanity a.k.a the higly-overly-complicated-proprietary piece of crappy techonology to solve for PNG transparency for the world most inferior browser.

Hi Alex,
We have implemented support for transparent PNG in IE7 (not the IE6 library named ‘IE7′, but the new version of the browser at http://www.microsoft.com/ie). You can find more details at http://alexle.net/archives/84.
We worked pretty closely with partners like Y! to prioritize the fixes for IE6 “insanity”, and this is one of the fixes we prioritized. Please do let me know if it’s still a problem in the new version (joshuaa at microsoft dot com). The fix was not in earlier builds of IE7, and of course IE6 will still be the dominant browser for the next 6-8 months, so it is still necessary to do the hack — but you can be certain we are working hard to put it to bed.