IMovie '11 pointer has no transparency

Thanks to Karsten I successfully inserted several pointers in an iMovie 11 sports video.  However my second video was not successful.  Every time I insert a pointer I get a black box on the preview screen.  Also sometimes the pointer type/color is changed in the edit window.  If I select a green lower left pointer I sometimes get a blue lower right.  I have selected "Crop" for Photo Placement in Properties and all files are .png.  Anyone have any ideas?

As long as the transparency is working the ratio doesn't seem to be an issue. Sorry I don't know about the circle pointer rather than another pointer.
You can create a transparent png file in Preview. Preview doesn't create new blank files so you want to start with a screenshot.
First go to iMovie and do CMD-Shift-4. You will see a crosshair cursor. You can release the CMD-shift-4 now. Now drag the crosshair cursor to select just the viewer of your iMovie project (this will give you the correct height/width ratio). While still holding down the mouse press the Control key and release.
Holding down the Control key while releasing the mouse copies the screenshot to the Clipboard.
Now go to Preview. Go to File and select New from Clipboard (or press CMD-N). This will look like a screenshot of a frame of your movie. CMD-A to select all and then press delete. Now you have a blank, transparent canvas to work with.
Click the Edit button to show the Edit tools. Click the line button on the toolbar to add an arrow, adjusting the color and line width to your liking.
File > Export. Export the file as a png file. Alpha should be checked.
Message was edited by: trailgirl fixed a typo.

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