Select Yes. Transparent images
are special GIF or PNG format files containing areas which are
"invisable", allowing the inserted object to float within the
original image without showing borders. The following example shows
a transparent image and a non-transparent image:

As you can see, transparent images are a great choice
for inserting clipart on top of other images! All images included
with the Caricature Studio program are transparent. When the
dialogue box appears, select Yes to make the image
transparent.
This function works only on transparent
GIF and PNG images. If you choose Yes to make the
image transparent and it is not a transparent GIF file (example,
one of your own images), it will have no effect. The image will
insert, but it will not be transparent. Besides the clipart
included with the program, there are many free online clipart
galleries with transparent GIF files.
You can make your own transparent GIF images!
See Creating Transparent Images in the Help file
for more information.
Additional Functions