diff -Naur tilda-0.09.4-orig/src/load_tilda.c tilda-0.09.4/src/load_tilda.c
--- tilda-0.09.4-orig/src/load_tilda.c	2006-11-28 14:56:43.000000000 +0900
+++ tilda-0.09.4/src/load_tilda.c	2007-01-06 03:05:09.302099002 +0900
@@ -140,11 +140,8 @@
     if (cfg_getbool (tw->tc, "enable_transparency") && transparency_level > 0)
     {
         vte_terminal_set_background_saturation (VTE_TERMINAL (tt->vte_term), transparency_level);
-        vte_terminal_set_background_transparent (VTE_TERMINAL(tt->vte_term), TRUE);
-    }
-    else
-    {
-        vte_terminal_set_background_transparent (VTE_TERMINAL(tt->vte_term), FALSE);
+        vte_terminal_set_opacity (VTE_TERMINAL (tt->vte_term), (1.0 - transparency_level) * 0xffff);
+        vte_terminal_set_background_transparent (VTE_TERMINAL(tt->vte_term), !tw->have_argb_visual);
     }
 
     vte_terminal_set_background_tint_color (VTE_TERMINAL(tt->vte_term), &tint);
diff -Naur tilda-0.09.4-orig/src/tilda_window.c tilda-0.09.4/src/tilda_window.c
--- tilda-0.09.4-orig/src/tilda_window.c	2006-11-28 14:05:59.000000000 +0900
+++ tilda-0.09.4/src/tilda_window.c	2007-01-05 19:43:20.335314990 +0900
@@ -93,6 +93,28 @@
     CFG_END()
 };
 
+static void
+initialize_alpha_mode (tilda_window *tw)
+{
+    GdkScreen *screen;
+    GdkColormap *colormap;
+
+    screen = gtk_widget_get_screen (GTK_WIDGET (tw->window));
+    colormap = gdk_screen_get_rgba_colormap (screen);
+    if (colormap != NULL && gdk_screen_is_composited (screen))
+	{
+		/* Set RGBA colormap if possible so VTE can use real alpha
+		 * channels for transparency. */
+
+		gtk_widget_set_colormap(GTK_WIDGET (tw->window), colormap);
+		tw->have_argb_visual = TRUE;
+	}
+	else
+	{
+		tw->have_argb_visual = FALSE;
+	}
+}
+
 /**
  * Get a pointer to the config file name for this instance.
  *
@@ -282,6 +304,7 @@
     /* Create a window to hold the scrolling shell, and hook its
      * delete event to the quit function.. */
     tw->window = gtk_window_new (GTK_WINDOW_TOPLEVEL);
+    initialize_alpha_mode (tw);
     gtk_container_set_resize_mode (GTK_CONTAINER(tw->window), GTK_RESIZE_IMMEDIATE);
     g_signal_connect (G_OBJECT(tw->window), "delete_event", GTK_SIGNAL_FUNC(deleted_and_quit), tw->window);
 
diff -Naur tilda-0.09.4-orig/src/tilda_window.h tilda-0.09.4/src/tilda_window.h
--- tilda-0.09.4-orig/src/tilda_window.h	2006-08-25 00:03:16.000000000 +0900
+++ tilda-0.09.4/src/tilda_window.h	2007-01-05 19:43:20.359317020 +0900
@@ -37,6 +37,7 @@
     gchar *config_file;
     gboolean config_writing_disabled;
     gint instance;
+    gboolean have_argb_visual;
 
     /* Stores all configuration */
     cfg_t *tc;