Setting my PictureBox to transparent background color doesn't really make it transparent. Bug?

Here's what I have in VERY simple easy to grasp terms.

1. My form background is Blue.

2. I created a gradient image from white to the Blue from the form background开发者_开发问答. This is to give the form a nice gradient look. I added a picturebox to my Form and set this image as the Image.

3. I added a picturebox with a Logo on top of the gradient Picturebox, but it's 'grabbing' the Form background color and not respecting the transparent background image I wanted it to grab.

So:

Blue Form -> Huge pictureBox with gradient -> Small picturebox thats supposed to respect the gradient.

Help please!

I think this might be as the PictureBox is not a control container. So this implies that when you drag the button picture box onto the main picture box, it is not actually a child of the picturebox, but rather of the form.

You would notice that if you were to do he same with a panel (set the form blue, panel background image, and place the button picture box control on the panel) it would show transparent to the panel control.

Why not rather set the Form BackgroundImage, avoid the Huge Picture Box, and set the small picture box on the form itself.