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This code makes use of some code from Zafir Anjum, specifically the code to load a background image.
Ok. Every window has a Region. This is how Windows knows what area of the screen to draw on when something changes in your program. Normally a windows Region is square, but you can make one that is non-square (basically any shape you want) so that Windows will only draw the part of your window that is within the non-square Region. What I have done is scan through the window pixel by pixel looking for the color I want to make transparent. Everytime I find that color, I add it to a temporary Region. I collect all the transparent spaces, then invert it and assign it to the window. The CRgn class, as it turns out, it a very powerful little class.