Does Tiger no longer supports tranparencies in FM?

[je duce]

I have multiple photo images that I use as icons and artwork that no longer have a transparent background after switching to Tiger. For example a small photo image of a printer (jpg) was previously displayed without a matte. Showing only the printer and the background was that of the layout being displayed. Now a white background matte is displayed filling in the entire field of the photo image. I'm using FM 7.0 v3.

I've turned on and off the transparency selector in the fill panel. If I select a solid color other than white the photo field remain white as it should since it was imported with out a background.

Is there a preference setting I'm missing? Is there a specific format of the photos to use that allows transparent backgrounds?

[CoZiMan]

PNG works best IMHO