There are probably already a couple of tutorials on this, but oh well. This is the way I've found to fix this issue.

Are you having problems with transparency in gif and png images? Seeing the sky, ground, or other objects through your images? This is the result of a render order bug in the Active Worlds browser. The browser draws the wall (or sign or whatever is behind your gif or png picture) first. Then it draws your transparent picture on top of the scene. The problem is, it has...