Transparency
Note: The animation's current background color is taken as the transparent color. Thus set the animation's background color correctly before activating the WAD script.
NO TRANSPARENCY (not checked):
Use No Transparency when you have just digitized a picture, and using transparency will create unwanted holes in the picture. However, there are instances where you need a transparent color--for example if you want the picture to be an oval instead of a rectangle, with the area around the oval being transparent--in which case use LESS COLORS (there is an operation in 'special operations' that will do it automatically) to reduce the palette by one, thus freeing up the last palette color to use wherever you want transparency.
TRANSPARENCY (checked):
The greatest use of transparency is to give an animated object a transparent background so that you can place the animation on top of a texture tile or background picture. If your web page uses solid color, then it doesn't matter (you match the animated gif background to the web page background); but doesn't look as interesting. Thus, with transparency around a hopping bunny, for example, you can place the hopping bunny animated gif on top of a web page with a background image of a forest. Another use of transparency is to show photos that are not rectangular, as described in the paragraph above.
See also notes on transparency under 'Optimization'