graphics with transparent background placed on a stretched graphic

Question on graphics with transparent background and web stretchy. The attached jpg is a screenshot of an xara webpage. The graphic on the left is a saved .png with transparent background. The second photo used the magnetic lasso tool to cut the photo without the background. The third photo I used the enhance photo tool, mask tool, and Select colors to enhance tool to remove the background. You can see what happens to each when a stretchy background graphic is put behind. The 1st and third seem to grab the original unstretched bacground when displaying. What's the difference? .xar attached. Thanks. Attachment 133668

Nancy

Nancy, any foreground image over a Stretchy background has to be set to PNG. Xara fails to understand this and defaults images to JPEG regardless. JPEGs do not have an Alpha (transparency) channel.
WebPs have transparency but just allowing these without forcing the image to PNG returns the same munged edging.

Acorn

Thanks Acorn I guess I knew about the setting in web properties, but I guess I didn't connect with me to set it on .pngs, and the other transparent background. Will save me time and headache from what I've done to remedy it!

Nancy