A great thing about all of the wonderful visual effects of PPT 2007 is that they respect the transparency/alpha area of a .png image. As example here is a quick sample image. In photoshop I dropped out the background around the little computer guy and saved out the image as .png with transparency.

For this example I added the background image behind part of the computer guy to show the transpency area.
Then I selected the computer guy image and applied a nice PPT 2007drop shadow.

Note the drop shadow contours to the computer guy image, not the rectangle shape of the placed image!

- Troy @ TLC
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