I am using SetLayeredWindowAttributer to make a particular color of layered window transparent.
This works fine on Windows XP,VISTA . But when I use the same on Wi
You should avoid using 0xff,0xff,0xff (white) with LWA_COLORKEY. Any other value should be fine (e.g. 0xff,0xff,0xfe).
For more control over your layered window I suggest you consider using UpdateLayeredWindowIndirect. I wrote an article that describes in detail how it can be used with both GDI and Direct2D.
http://msdn.microsoft.com/en-us/magazine/ee819134.aspx