I want to apply alpha opacity filter to transparent PNG file however I stumble a serious problems under IE6 and IE7 because one doesn't want to display transparency and the second displays sharp edgy inner corners.

This is an example image

http://hdd001.republika.pl/test8.png

here is a html

Code:
<div class="example"></div>
and CSS

Code:
.example {
background-image: url(test8.png);
background-repeat: repeat-y;
filter:alpha(opacity=65);
-moz-opacity:.65;
opacity:.65;
opacity:0.65;
}
Firefox and Safari display this fine however :

IE6 - corners are smooth but no transparency
IE7 - corners are sharp and bad looking, transparency is OK

I wanted to use iepngfix.htc or AlphaImageLoader but it looks it doesn't like background images.

any solution ?