If you use a PNG8 with alpha transparency, images can have transparency in IE6. The caveats are that you can only have fully transparent or opaque images (anything in between will just be rendered 100% transparent) and that you can't use a large color palette or gradients.
Depending on your design, there is a possible workaround or you can use this in conjunction with the PNG8 option above. If your background is simple, you can just match anything outside the corners with the background. Using this technique, you could easily make do with a single image for your corners if you make use of sprites. The markup would look similar to the following:
<div id="content">
<span class="lt"></span>
<span class="rt"></span>
<span class="lb"></span>
<span class="rb"></span>
</div>
And the CSS:
#content {position:relative;}
/*These styles are generic and can be reused over multiple corner types*/
.lt, .rt, .lb, .rb{
background:url(../images/button_corners.png) no-repeat;
width:5px;
height:5px;
position:absolute;
}
.lt, .rt{top:0px;}
.rt, .rb{right:0px;}
.lt, .lb{left:0px;}
.rb, .lb{bottom:0px;}
/*The following would be used specifically for #content, but you could reuse a different part of the same image for a different container or button */
#content .lt{background-position:-200px 0px;}
#content .rt{background-position:-245px 0px;}
#content .lb{background-position:-200px -45px;}
#content .rb{background-position:-245px -45px;}
There are advantages and disadvantages to this approach:
Advantages
It's cross-browser, it works with liquid and fixed layouts, and you can use it for menu items (hover will work in IE6 for links) or containers, it doesn't require JavaScript, and using a CSS sprite, you can do it with a single image, even with multiple corner types.
Disadvantages
It won't work with every layout, borders can be tricky or ugly, it adds a few extra elements into the markup, and if you use it for a link item with a hover effect, IE6 has a hover flicker that can only be solved with a little bit of JavaScript. However, that JavaScript is only one line and can be included in a conditional comment:
<script type="text/javascript">document.execCommand("BackgroundImageCache",false,true);</script>