New UnDelphiX should support alpha-channeled PNG images. It's propably over 3-4 years since i last used it and it worked back then. So you can have pixels which transparency is value anything from 0 to 255.
The glowy edge on images is propably caused by JPG saving? That format is never pixel-perfect, and shouldn't be attempted to use with transparency masks. You should really learn Gimp, it packs alot of possibilities and easily rivals best commercial software such as Photoshop.
It means that you have 1 solid color as background in that combined animation picture, that is often times fuschia or black. Even if animation software gives the picture a transparent background, you can add make it black yourself with Gimp for example. MsPaint does not support any kind of transparency unfortunately.I dont know of any animation software that uses single color
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