Is it really true that Crystal Reports does not support images that have transparency?
We are using it at work and the guy that does Crystal Reports told me it does
There is another work around I tried and was successful. If you want the image as a watermark in your report, use your report as a sub report in the detail section of the main report and keep the image in a main report page header and use the option 'Underlay Following Sections' in the Section Expert. All the lines and texts will appear properly on top of the image.