I should have mentioned in the initial post that I am running Publisher 2007.

Denise, thank you again for the article. However it did not help with my situation. The article was written for a different problem people were having regarding PNG files with the Publisher 2000 version.

I am not having the problem they were discussing in that article. However at the bottom of that article there was a reference note about my problem, and its not good news. Here is what it stated:

NOTE: Pictures inserted from transparent TIFF and PNG files do not print correctly to many types of printers, especially those that use the PostScript (such as a PDF converter / printer) page description language. This is not a problem unique to Publisher, it happens with many other programs as well.

So that's what it said and it did not offer any solutions. However this article was for Publisher 2000. So maybe there is some more recent information on that site. Its 11:30pm and I need to give up on this for now, I'll search some more after Ive slept!

Oh and I did try the "work-around" they mentioned for the other PNG issues just to see if it would change / help my problem. But no luck there either.

I did however stumble on a "tool" that I hadnt noticed before in Publisher 2007. The picture editing toolbar has a tool (the icon looks like an inkpen pointing at a corner bracket) that allows you to "set transparent color". So if you have a JPG image and you just want the white parts (ie. behind your logo) to "dissapear", you can use that tool. Worked very nicely and I will use it in the future... BUT... once again, and despite that the image was a JPG file this time, when I converted / printed the flyer to a PDF file, the image did not look good anymore.

=(

Oh well. Its not the end of the world.
It is frustrating though =I

Im off to get some sleep!

~Kim