There should be nothing wrong with what you have done in this part of the program. You have set a few options so it might be a case of not setting them back afterwards (or somewhere else in the program).
Try creating a simple program to see whether you have it working with this image...
e.g.
Try creating a simple program to see whether you have it working with this image...
e.g.
Graphics 800,600 back = LoadImage("background.png") fore = LoadImage("fore.png") While Not KeyHit(key_escape) Cls DrawImage back,0,0 SetBlend MASKBLEND SetAlpha 1 SetRotation 0 DrawImage fore,100,100 flip Wend