In VS2003 .Net 1.1 it works for me right out of the box, just by setting the transparent backcolor. 'visual styles enabled' is something you could do with .Net 1.1 by calling Application.EnableVisualStyles() before components were initialized or by a manifest file if I remember correctly. For .Net 2.0 it is enabled by default but can be turned off. Many people does this for better app looks and that was the reason I meantioned it, visual styles and transparent control backcolor does not work together. If you don't know what it is there is a big chance you haven't enabled it (because it requires explicit action from you to do so). I don't know any issue about it otherwise.