congrats slushba you earnt how to use alpha channel
get a medal
I've got my alpha layer correctly done, it was ok from the start, as well recreating my icons as a png, but it still doesn't solve my problem with rcoEdit stretching the icon horizontally when I import it. Still trying to figure out what is going on.
I'll see if what is mentioned there fixes my problem, it probably will. Will post results later.
edit: yup, that fixed things. Nice to know that visible dimensions have to be even numbers.