FYI - for those who are interested in making their own changes I have downloaded most of the images from Wikipedia which seems to provide good logos in .png format that already have transparent background. Just go to wikipedia and search under the channel name and you should see a logo show up on the main page - usually in the top right corner of the screen. Save this logo in the ChannelLogos folder in Sage and you are done.
If you have to do any editing I have been using paint.net which is free and allows for transparent backgrounds. The optimal colour you use may decide on your background - with the default UI anything with dark blue (think of the Toronto Maple Leafs / LeafsTV logo) gets somewhat lost. Given the darkness of the background a white logo seems to look better than black - the CityTV logo that I have is all black but I might change it to white.
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New Server - Sage9 on unRAID 2xHD-PVR, HDHR for OTA
Old Server - Sage7 on Win7Pro-i660CPU with 4.6TB, HD-PVR, HDHR OTA, HVR-1850 OTA
Clients - 2xHD-300, 8xHD-200 Extenders, Client+2xPlaceshifter and a WHS which acts as a backup Sage server
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