Quote Originally Posted by RGMdddd
Pardon me if I am unaware of a feature that i should be using instead, but let's assume for the sake of argument that I have an image with a black background and contains 256 shades of grey to create the part of the image I want projected. Now I lay this image over a very colorful image and apply the [Transparent Blacks] FX. I believe that I will have varying levels of transparency from this effect. Is this correct?
By creating an image with true transparency (TIFF or PSD, for instance) I can always be assured that my images will look the way I intend them to.
can you draw me an image of what you want?

and how you want this to work?

And the options you are thinking off?

Can you mock me up an image in photoshop and post it here?

Transparent black will turn the grey image into a transparent region - based on the luminosity of the grey.