OK, I've seen MANY people have problems with this, and hopefully people will read this before they post. But, since I'm posting it as a Sticky, then most likely they won't.
:roll: :twisted:
1. Anyway, make sure that you are importing the picture through RPG Maker's Import/Export system, you can find the icon at the top of the screen (In any version) next to the database icon.
2. Click "Import".
3. A window will (should) come up after you select which item to import, displaying the image of what it is. LEFT click on the background (for XP), and then click OK. For 2000 and 2003, you have to DOUBLE-CLICK whatever it is you're wanting to be transparent. The whatever-it-is will then be flashing. Click OK.
4. You're done.