First of all I have no problem displaying PNG in vb3, we have rounded corners made from PNG format images. If you are browsing with Internet explore 6 or lower than you may have a problem due to a bug in IE 5/6 which do not show a (transparent) PNG correct, normal PNG no problem.
I'm not sure what you mean by:
Quote:
I know we need to add a file to our image folders, but for the life of me I can't find it in my FTP
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Can't you find the images folder? Normally it is in /vb3/images/.......
If you add an image to VB besure to check if the path to the images is correct, otherwise it won't be displayed. Image paths can be fount in the Admin panel, Styles and templates and then Stylevars.