Hi,
I am actually working with the RadBinaryImage in custom server controls, rather than in the html directly. I took away from the sample html tag you posted that I needed to set the ResizeMode property to none. However, that did not change anything. Transparent gif backgrounds are still rendering.
I've attached my sample class along with the following sample declaration to provide more context on how I am using the RadBinaryImage control:
Edit: Apparently I can't attach a .cs file, so here's the MyBinaryImage class: