Re: exact size graphic
PNG supports two kinds of transparency:
First is palette based transparency works like GIF transparency does. You designate a color to be the transparent color and anything that renders the PNG knows not to display that particular color.
The second is alpha transparency, where there's an actual alpha channel included with the image. In this kind of transparency pixels are formatted as RGBA instead of RGB (i.e. a color and how transparent that color should be).
As far as I know (but it's been a while) the first kind of transparency works in IE, but IE can't handle alpha transparency, so it ignores the alpha channel entirely. As has been mentioned there are tricks you can use to make IE render alpha channel PNG's properly in a way that other browsers that know better entirely ignore.
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