Question:
How do I make the text background transparent?
Answer:
Use the Windows API function SetBkMode().
Example:
procedure TForm1.Button1Click(Sender: TObject);
var
OldBkMode : integer;
begin
with Form1.Canvas do begin
Brush.Color := clRed;
FillRect(Rect(0, 0, 100, 100));
Brush.Color := clBlue;
TextOut(10, 20, 'Not Transparent!');
OldBkMode := SetBkMode(Handle, TRANSPARENT);
TextOut(10, 50, 'Transparent!');
SetBkMode(Handle, OldBkMode);
end;
end;