Hi bylaardt,
Thank you so much for your response.
I am embarrassed to say that thanks to your response I figured out what the problem was -- it truly was a newbie problem (so embarrassing) it wasn't a code problem or a Lazarus problem at all.
The computer I am coding on is a new system, and it turns out that the monitor brightness was not set to be very bright. The form background was already white, but with the display settings on this monitor, it looked to me that the Lazarus form color was a light grey (and I made the assumption that this was the default form background color - light grey). I therefore expected my TImage with the brilliant white background to stand out against the form background. It didn't stand out, and I assumed Lazarus was treating my TImage background as transparent. As I say, so embarrassing.
Anyway, it was your response that helped me figure it out, as your second solution mentioned the form1.color... and this made me look into what value the form1.color was actually set to. As I say, so embarrassing. The problem was the monitor brightness making white look like it was light grey. Groan.
Well, that's not a mistake I'm going to make again.
Thank you SOO much for your help.
Eddie