Thank you to all. Soquili, I appreciate your info and fully understand how to set it up, however, my issue was after following the instructions, (as you have reproduced), my video is black (not transparent). Thanks Sadler, I think that your approach is how I will progress in future (I haven't tried running out .png image sequence from Xara, but from your response this is clearly a very possible approach - thanks. Scotty, appreciate your advice, yes, I'm using a very capable NLE (Vegas Pro 11, unlimited video tracks & audio and have been editing for some years on a semi-pro basis). Chroma key is certainly an option as well, however, it would be much simpler and more efficient if I can produce an AVI with transparency, given this should be an option straight from Xara. I'd be interested to hear if anyone can produce a transparent AVI, as this would indicate the problem is at my end, rather than a bug in Xara (I expect the former). I shall certainly be able to workaround with your suggestions, so it's not a showstopper, but I really appreciate you taking the time to respond.

Many thanks,

Duncan