That works thanks but it gives the same result as the lighting demo in C2.
In my project the top layer HAS to be transparent or it's not much use. Otherwise I would just be covering up backgrounds and other objects in my game. My posted .capx was just a basic example of the effect I'm after.
Basically what I need is an invisible mask, to reveal an invisible sprite, with full on layer transparency. Oi, I'm getting a headache dealing with all these blend modes.
Thanks for the help so far though everyone :)