I have a label that I can almost get transparent.

The surrounding label is, but the transparent parts of the image itself arent.

I've tried saving it as both gif an d png with no luck.

what am i doing wrong?
Nothing. When you add an image to the label it replaces transparency with the background color of the label.
In response to ExPixel (#1)
Then what's the point of transparent labels?
In response to Saucepan Man (#2)
Text on the label will blend in with the background of the window.
In response to ExPixel (#3)
*Small awkward cheer from random guy at the back of the room - which is cut off abruptly by no one else cheering and looking at him strangely*

In response to Saucepan Man (#4)
It's been suggested already and it should've been implemented by now but the staff has other priorities.
In response to MDC (#5)
How dare they!*
In response to Saucepan Man (#6)
I guess the only thing to do would be to vote for it. Hopefully they add this soon. BYONDHelp?command=view_tracker_issue&tracker_issue=1623