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With the PNG behavior, the PNG image is set as background of the blank gif. So, it should work correctly if you set "print backgrounds" to on in your IE preferences.
Sent: August 23, 2004
Subject: Re:PNG Behavior and Printing webpages
I've noticed that when you go to print a webpage with PNGs and the PNG behavior, all your PNGs disappear. (Rather, IE just prints blank.gif and not the PNG.)