In AIR 1.5.2, window transparency should work with embedded SWFs if the wmode set to transparent or opaque. In earlier versions, the SWF content wouldn't be displayed if the NativeWindow object transparent property was true. Is that the problem you are seeing? Or is the SWF displaying properly, except transparent areas of the SWF are showing as opaque?
Thanks for the help Joe,
As you mentioned the problem is that the transparent part of the swf are opaque. When executing the swf as a standalone air app they are transparent but when embed into a html document as part of and Air app they are opaque
Some more data. The transparency works fine over images embed web page. I tried to be cheeky and created a fully transparent png file. When executed on a transparent page all that was visible was the desktop, the I tried to embed the swf and got back to square one.
Is this an bug in Air?
I found the solution: The opacity style value of the html needs to be less then 1,
0.99 did the trick