Transparent png on android market for high resolution asset
In photoshop... File>Save for Web and Devices, ensure that your designer saves it as a PNG-8. As others mentioned in comments, the 32-bits that https://market.android.com/support/bin/answer.py?answer=1078870 is talking about is 32-bits for RGBA (8-bits for each.) I just tried this on mine, which was previously saved as PNG-24, and it seemed to have fixed it.
This was a bug in the market. Google looked into it and fixed it for us.
Well I just checked out my app and my transparent background works fine.
I have the design skills of a 2 year old, so here is a dirty fix:
Download GIMP (Freeware). Create the image with an alpha channel. Save the image (in PNG format) with the options "save background color" and "save color values from transparent pixels." Upload to market...voila.
Note, this method produces a 32 bit image.
Not much of a fix perhaps but at least it will work for now...
Edit:
As far as we can tell, he's doing alpha in the png, but it doesn't look right.
What happens when you open your image in an editor/viewer without a white background?