diff -u -ru typo3_src-4.0beta3/t3lib/class.t3lib_stdgraphic.php typo3_src-4.0beta3.gifbuilder/t3lib/class.t3lib_stdgraphic.php
--- typo3_src-4.0beta3/t3lib/class.t3lib_stdgraphic.php	2006-02-16 01:00:10.000000000 +0100
+++ typo3_src-4.0beta3.gifbuilder/t3lib/class.t3lib_stdgraphic.php	2006-03-09 03:45:03.150302424 +0100
@@ -2650,7 +2650,7 @@
 				case 'png':
 					if ($this->ImageWrite($this->im, $file))	{
 							// ImageMagick operations
-						if ($this->setup['reduceColors'] || !$this->png_truecolor)	{
+						if ($this->setup['reduceColors'] || (!$this->png_truecolor && $this->truecolor))	{
 							$reduced = $this->IMreduceColors($file, t3lib_div::intInRange($this->setup['reduceColors'], 256, $this->truecolorColors, 256));
 							if ($reduced)	{
 								@copy($reduced, $file);
diff -u -ru typo3_src-4.0beta3/typo3/sysext/cms/tslib/class.tslib_gifbuilder.php typo3_src-4.0beta3.gifbuilder/typo3/sysext/cms/tslib/class.tslib_gifbuilder.php
--- typo3_src-4.0beta3/typo3/sysext/cms/tslib/class.tslib_gifbuilder.php	2006-02-16 01:00:10.000000000 +0100
+++ typo3_src-4.0beta3.gifbuilder/typo3/sysext/cms/tslib/class.tslib_gifbuilder.php	2006-03-09 03:12:22.499366672 +0100
@@ -176,14 +176,17 @@
 			}
 			if (!$this->setup['backColor'])	{ $this->setup['backColor']='white'; }
 			
-				// Transparent GIFs
-				// not working with reduceColors
-				// there's an option for IM: -transparent colors
 			if ($conf['transparentColor.'] || $conf['transparentColor'])	{
 				$cObj =t3lib_div::makeInstance('tslib_cObj');
 				$cObj->start($this->data);
 				$this->setup['transparentColor_array'] = explode('|', trim($cObj->stdWrap($this->setup['transparentColor'], $this->setup['transparentColor.'])));
 			}
+			
+				// Transparency does not properly work when, GIFs or 8-bit PNGs are generated or reduceColors is set -- disable truecolor flag so they get generated "natively" in 8-bit.
+				// not working with reduceColors and truecolor images
+			if (($this->setup['transparentBackground'] || is_array($this->setup['transparentColor_array'])) && ($this->gifExtension=='gif' || !$this->png_truecolor || isset($this->setup['reduceColors'])))	{
+				$this->truecolor = false;
+			}
 
 				// Set default dimensions
 			if (!$this->setup['XY'])	{$this->setup['XY']='120,50';}
@@ -441,7 +444,7 @@
 		} elseif (is_array($this->setup['transparentColor_array']))	{
 				// Multiple transparent colors are set. This is done via the trick that all transparent colors get converted to one color and then this one gets set as transparent as png/gif can just have one transparent color.
 			$Tcolor = $this->unifyColors($this->im, $this->setup['transparentColor_array'], intval($this->setup['transparentColor.']['closest']));
-			if ($Tcolor)	{
+			if ($Tcolor>=0)	{
 				imagecolortransparent($this->im, $Tcolor);
 			}
 		}