I just happened to chance upon this website - The Powerpoint WOW - Special effects with images - a few days ago that shows some cool stuff that can be done in PowerPoint. I think it is only valid for PowerPoint XP and 2003 though - if I'm not mistaken PowerPoint 97 and 2000 (these are really quite ancient) do not have the transparency effects.
Note that if you're using PowerPoint 2007 then some of the points in the article aren't relevant because the effects are already available predefined in PowerPoint 2007. Which is quite nice.
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