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wheel - 2:53 pm on Dec 12, 2008 (gmt 0)
It seems gif's have 'transparency' on or off. png's can have transparency gradients or non-on/off values. And IE 5 and 6 can't handle that. The only solution appears to be through CSS or JS and are real hacks. Like, non traditional css attributes, stuff like that. Ultimately, while I figured I was doing the right thing using png files, the end result is that the solution was to use a gif of the logo file.
Thanks Limbo! That explained it. A quite revealing look into png.