I came up with the idea in the tub, implemented it without a hitch and I'm pleased with the effect, I hope you enjoy it as much as I do. Note: Only works on Windows 2000 or greater, Sorry 9x'ers
Fades to transparency when mouse exits Winamp, and fades in to full view when mouse is over Winamp. You can configure how fast the fades happen and how transparent Winamp gets.