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Is it possible to do partially-transparent PNG's in Photoshop CS4?

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Of course. Just create an image with partial transparency and save it as PNG.

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Yes, the best way to do this would be to adjust the opacity of the layer before saving the file.

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That depends on what kind of transparency you want. If you want to turn an opaque image into a half-transparent one, then yes. For nearly all other uses that doesn't suffice. –  Joey May 5 '10 at 13:59

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