Trying to load a masked image

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Couple more questions. I see that PNG's are supported now. Does this mean they keep their Alpha channel information?

Secondly, if I am loading a BMP or JPG which I have a mask color, how do I load it with that mask color. This is what I am trying:

setmaskcolor(255,0,255)
n.img% = LoadImage(tempimage$,flags=MASKEDIMAGE)

It's giving me a flag error. Do I not have to set the flags for the loadimage?