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To find out your version of IE just go to Help / About Internet Explorer and the version will be beneath the MIE logo...
As for the transparency issue:
I think you need to add the TRANSPARENT tag to the background definition to get IE to allow Transparencies...
background: transparent url(whiteback.gif);
That should work.
I also noticed the example detects IE6 and applies different CSS for the division that has transparency... i didn't spend enough time to figure out exactly why, but it looks like positioning and the different CSS has nothing to do with the issue at hand.
Hope this helps...
Mike.
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