Hello! 
I tested the VI called Transparency.vi and it runs... 
To test this vi I copied several  files to my /LabVIEW7/user.lib  folder 
LVWUtil32.dll       33kb 
MANUAL.WRI     468kb 
Readme.doc        24kb 
Winevent.llb      541kb 
WINKEY.LLB        68kb 
WINNET.LLB        51kb 
Winsys.llb         164kb 
WINUTIL.LLB     646kb 
My system:  WinXP SP1, LabVIEW7 
I testet the VI with different windows, like  notepad and so on... and it works...