Overlays for videos in PNG format

[Windz One]

Hello guys. . .

1st off. . LONG TIME LURKER. . .so please play nice. I've been using Paint.net for over a year now, and have never really went into detail for what I'm going to be getting into

I'm currently starting a web show for Djing myself and other Dj's in my area, and I realized that there were other dj's doing the same thing, but they were pretty straight forward and not professional looking. I was in the process of making a banner for my own webcast, but I'm getting frustrated for clearing the background so that a floating banner near the bottom of the screen during the webcast/recorded show.

I've been saving/deleting/experimenting with tolerances so that the background is clear so it appears to float on screen (no effects, just a banner). I've done everything I can to get a clear background, but have been failing miserably, and i couldn't seem to find anyting in relation to this.

If it helps:

the screen size I'm going to be working with is 640x480. The banner I'm creating is 640x100 for the banner. I've also been keeping the Save Configurations to 8-bit so it doesn't effect (I could be very wrong about this too, though) video quality (atleast that I know of).

Here's an example of what I would like to do. . .

Instead of keeping the MF logo restrained in the border, I've been wanting to let it overlap over, but doing that I would get either black or white background, depending on the tolerances that I delete off, and as a PNG file.

So it looks like this on screen:

This is information overload I know, but c an someone please help me out? I've been at this for over 2 weeks, and I'm bout to give up on this whole thing

Edited February 2, 2011 by Windz One

[Sarkut]

If you want the background area where the logo overlaps

to remain transparent, you will have to save as 32-bit PNG.