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Image transparency problems - weird. Please have a look.
After upgrading to 1.1.6, I have noticed strange transparency problems, only affecting uploaded PNG product images, and only the 125x125px ones that appear in “You may also be interested in the following product(s)” on product pages.
PNGs themselves are saved without transparency, so I’m not sure what Magento is doing here to mess it up.
Please see the attached image. Have you noticed anything like this?