I found a really (really!) nice solution to get PNG alpha channels in IE. You need to do 2 things:
Copy:
<style type="text/css">
img{
behavior: url("pngbehavior.htc");
}
</style>
Was that difficult? No. Does it work? Yes (for Mozilla users: right-click, start up IE, paste the URI and visit the site).
Be sure to check out the rest of the WebFX site.
You forgot one very important thing... The code you gave is not valid and thus will not validate. It is an IE-only CSS extension. Just thougt you should know... ;)
Greetings from me, who has just returned from a great vacation in Turkey.
YAY! :-)