'True' Control Transparency - Control With Motion Graphics (simplicity, A 'video Player' Control)

Here's my situation: I have a control with motion graphics (for the sake of simplicity, a 'video player' control) in my project. Think of a PictureBox with constantly-changing images. In front of this will sit a second control (such as a second PictureBox of the same dimensions). The topmost PictureBox will be drawn to in its Paint event.

I need to draw very few elements, and the bottom control is updated much more frequently than I need for this drawing. So these elements are drawn to the topmost control. Think of a news broadcast, where they have live video in the background, with a news channel logo, news ticker, and sometimes gradient visible in front.

I'm trying to create that 'foreground' control, and the closest I believe I have gotten so far is the following:

Imports System.Drawing
Imports System.Drawing.Imaging
Imports System.Drawing.Drawing2D

[CODE]...

The 'Opacity' property in the code above is a sort of "scaling factor." The image drawn to the top control may, in different parts of the image, have any alpha value from full transparent to a full 255. This 'Opacity' property is applied to the entire image being drawn, scaling the alpha values of each pixel.

See the following pictures for description:

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