text_watermark() transparent source image problem

[eluser]srpurdy[/eluser]
Hi I looked around for a solution to this. Although I was able to get a png to be transparent it messed up other images using the image_lib, basically all I would like to do is create a page heading using the image lib So the background color of the image is transparent, and has nothing in it at all, this than creates a second image which is the one that is rendered on the specfic page.

To see an example of it working(but using a solid background) http://www.ileaguerace.com/ The Welcome to iLeagueRace is generated this way.

So my question is how can I do this for images that should remain transparent? What happens without any changes to the image_lib currently is the image gets converted to a white background. When I used code I found on the forums here, that was designed to work for the resize() function it messed up my capitcha image on my forgot password page, (the text was no longer readable)

I looked through a lot of threads and never found a solution to this problem, I'm using GD2.

Thanks
Shawn