[...]
It does not appear to like being tweaked in the designerwindow much, but
when adding it manually it does display the background in a faded manner.
Try placing it on top of something else. You'll find that while the
"background" is painted with the alpha, it's not actually transparent.
Unfortunately, I'm not aware of a way to do this using the existing Forms
namespace. Even with the BackColor property set to Transparent, it's not
really transparent. It just inherits the parent's BackColor. And Windows
clips underlying controls, making the assumption that your own control is
opaque, so even if you configure the control to be completely owner-drawn,
including the background, any underlying controls are never drawn
underneath your own.
It's possible that there's a way to do this using WPF. My understanding
is that WPF uses something more akin to Java's idea of "lightweight"
controls (i.e. controls that aren't individually tied to an OS window
handle object), and if so it wouldn't be constrained by how Windows
works. But I don't know enough about WPF to say how this would actually
be done.
Pete