The long answer is that you can but you have to use GDI+ to draw it to
the form as transparent by overriding the controls OnPaint method.
There are several implementations of this on www.codeproject.com but
none of them work 100% (try transparent panel). If after looking here
you are still stuck then I have some code that will do what you want.
It will take me a while to figure out how to explain it to you though.
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