On 14 Feb 2014, "Mayayana" wrote in
microsoft.public.windowsxp.general:

Drop shadows are not the same as transparent color for
icons. The transoarent color should always be not showing
if the icon is made correctly. And PNG is not the same as
ICO. I'm guessing it's just that PSP8 is too old. Full support
for PNG is relatively recent.

PSP9 doesn't deal correctly with this example's transparency, either.