Mystery Graphics in IE 6/7

I’m a getting a display error in my sidebar using IE7 (www.asianramblings.com). Everything displays perfectly in FF. After researching, apparently there is an issue with IE7 rendering transparent PNG files.

I am not using a WordPress Plug-in — AdRotate. With the Gazette 125×125 insertion everything is fine and displays properly. If AdRotate is used two additional files are placed before the 125×125 ads (see the site). I use this same Plug-in to randomize the 300×250 at the page top and have no issues in IE7.

There is nothing in the displayed source code to indicate any strange files before the ads. Is this just an IE 7 problem? I had a similar problem in IE 6 and upgraded to 7. Same deal. I know this could be linked to the plug-in, but everything is displayed properly in FF.

Any help would be helpful.

Thanks