IE 8 absolute png issue

[shiznit770]

I am using jquery to create some animation effects on several png images. It works fine in other browsers that support transparency but I'm seeing some wierd behavior in IE 8. The png images look terrible. If I take the animation out they look fine when they are stationary.

Here's the example demonstrating my problem.

http://andy-g.is-a-geek.com/splash2.htm

Has anyone experienced this problem or know of a work around?