{ Create transparent 200x200 yellow circle layer. }
  LLyrRect := Rect( 0, 0, 200, 200);
  IEView.LayersAdd( iesEllipse, LLyrRect, clYellow, 1, clYellow );
  LLyr         := IEView.CurrentLayer;
  LLyr.Opacity := 0.5;  { Doesn't work on PNG file }
//  LLyr.FillOpacity := 0.5;   { Does work on PNG file but pen solid }
  LLyr.ConvertToImageLayer(1, False);
  IEView.Update();
  LLyr.Bitmap.Write( 'IELayer PNG.png');   //Background Transparent but fill not.
  LLyr.Bitmap.Write( 'IELayer BMP.bmp');   //Neither background or fill transparent.
  Image2.Picture.Assign(LLyr.Bitmap.VclBitmap);

  //Try setting pixel format and using SynchronizeRGBA.
  IEBmpOvr := TIEBitmap.Create(LLyr.Bitmap);
  IEBmpOvr.PixelFormat := ie32RGB;
  IEBmpOvr.Write( 'IEBitmap BMP.bmp');
  IEBmpOvr.Free();
  IEBmpOvr := TIEBitmap.Create(LLyr.Bitmap);
  IEBmpOvr.SynchronizeRGBA( False, True);  //Convert 24bit image + alpha channel to 32bit RGBA.
  IEBmpOvr.Write( 'IEBitmap Sync BMP.bmp');

  { Create video overlay frame using Bitmap Handle (assumes 32RGBA format). }
  if m_pFrameFactory = nil then
    m_pFrameFactory := CreateComObject(CLASS_MFFactory) as IMFFactory;
   m_pFrameFactory.MFFrameCreateFromHBITMAP( IEBmpOvr.VclBitmap.Handle, CursorData.MFCsrOverlay, '');
//  m_pFrameFactory.MFFrameCreateFromFile('IILayer PNG.png', CursorData.MFCsrOverlay, '');

  // Create a PNG with a 50% transparent ellipse
  ImageEnView1.Blank;
  aRect := Rect( 0, 0, 200, 200);
  ImageEnView1.LayersAdd( iesEllipse, aRect, clNone, 0, clRed );
  ImageEnView1.CurrentLayer.Opacity := 0.5;

  // Merge with Alpha Compositing
  ImageEnView1.LayersMergeAll( True );

  ImageEnView1.IO.SaveToFile( 'D:\out.png');