NETCF - Displaying custom shaped form in compact framework

Question

Hi guys,

I am developing some small little application that sits on the screen and on top of all window and flies around the screen, could be a bird or a butterfly or a fish.

But I have a little bit of problem.

How do I redraw the background without my images included? or how do I copy the background (not the wallpaper) behind my form with image?

is it possible to have a custom shaped form also?

currently, the app looks like this the 2nd image with X is what I currently have (it has some sort of tearing) and it's supposed to be the 1st one with check mark.