PNG transparency not working?

Using PS version 7.0...
I've made an image with a shadow along the top  portion, and saved it as PNG-24 to preserve transparency,  but it comes out as seen in this screen shot.  I've tried  various ways of saving the image, but nothing I do gives me the desired  result.  Any suggestions?  Thanks in advance!

You should have no problem saving a transparent or partially transparent PNG file, even just using File - Save As...
Edit:  I re-read your post and noted that you're using Photoshop 7.0.  That's pretty old, and I'm not sure but you may have to use File - Save for Web.
You're probably aware of this, but I'll mention it anyway:
How you view/display the PNG file matters...  Browsers render transparency, but image viewers often do not.  Was the screenshot you displayed rendered in a web browser?  Please feel free to download and use whatever parts you like from this web page to test with:
http://Noel.ProDigitalSoftware.com/temp/TransparencyTest/TransparencyTest.html
-Noel

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