transparency

Have you tried this ->
BOOL TransparentBlt(
HDC hdcDest, // handle to destination DC
int nXOriginDest, // x-coord of destination upper-left corner
int nYOriginDest, // y-coord of destination upper-left corner
int nWidthDest, // width of destination rectangle
int hHeightDest, // height of destination rectangle
HDC hdcSrc, // handle to source DC
int nXOriginSrc, // x-coord of source upper-left corner
int nYOriginSrc, // y-coord of source upper-left corner
int nWidthSrc, // width of source rectangle
int nHeightSrc, // height of source rectangle
UINT crTransparent // color to make transparent
);