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Watermark aliasing issue

Watermark aliasing issue

Hi there.


I have uploaded my logo in a 24 bit png format for the purpose of watermarking.


I have set it to 20% transparency and also 370 by 370 px dimension. The actual uploaded image is 1100 by 1100.


However the issue is it shows a white aliased edge around it when the original as it is 24 bit does not have the aliased edge.


Any thoughts about this and how to work around it.


Previously I have created all my images in photoshop with my own watermark system actually embedded into the image file. But if I can get magento watermarking working as I would like it would save me 1 job in image creation.


Please advise and thanks,