No problem Splashman here is the starry background image http://www.mediafire.com/?injtkzjn2ew
It's very basic since I just made it to test if it would work. The final one should have more stars and with different colors like the original.
I think the transparency problem might be related to the way the image is stored (see the example below). As you can see the top one which is a texture with transparency is of a different type (RGB5A3) to the bottom one which is the current image (CMPR). One thing that concerns me is the 4 bits per pixel which would mean high levels of compression.
Hopefully we can find a way to change this.
Edit: I was able to change the texture format to RGB5A3 using Smashbox 0.57 (didn't work with BrawlBox). But I think it might have messed up the model since the model doesn't open in SZS Modifier and it causes a memory address error in Dolphin.