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In Internet Explorer, you can set the contenteditable attribute to true on a span element to achieve what you are looking for.
<span contenteditable="true">I'm editable and transparent</span>
Brian R. James
From: Anastasios Angelidis
Sent: October 27, 2003
Subject: Re:Transparent background for input type text.
Is there a way to have an input of type text to have a transparent background to see what's behind the text box. Bassically only see the cursor and the letters. Can this be done with CSS or does it have to be some dynamic type layer or something?