Don't flatten the image in Photoshop - but you can merge down and still keep the transparent background.
Make sure the image is RGB – not CMYK format.
If you have any effects on it - such as Bevel and Emboss or Drop Shadow, once you've imported, double-click to open in the timeline, then drag the image from the timeline to the browser, and use that clip/
If my memory hasn't failed me, the effects will be preserved in the clip that way.
(Sort of magic, really)!
Andy
Quad 8GB. 250+500 HDs. G-Raid 1TB. NORTON. FCP 5.1.2. QT 7.1.3. Sony HVR Z1E Mac OS X (10.4.7)
"I've taught you all I know, and still you know nothing".
It would be worth spending some time reading this:
http://www.kenstone.net/fcphomepage/basicps.html
Message was edited by: andynick