This example should show a smooth fadeTo DOWN to a .5 opacity and the back up to a 1. What happens and I believe this to be a IE7/IE8 Beta PNG Rendering issue is that no transition is displayed except the final frame. I've tested this in FF2, IE7, IE8 and Opera 9. Only IE7/IE8 display the problem.

Further, this only happens when a PNG is involved in the background layer. I tried putting a solid background through a table and no luck. If the PNG exists below the image somewhere in the zorder this effect happens.

rob@mechsoftware.com