a couple of tests I did indecates:
 
1. IE8 does support the transparency of the png file 

<https://lh4.googleusercontent.com/_p9BCUa-Yw1I/TbrbiAyZyII/AAAAAAAAABE/1XiUxYL8aWI/test.jpg>
2.it does not seem to have 'isPng' parameter;
 
3. png file I generated seems to work fine:

<https://lh3.googleusercontent.com/_p9BCUa-Yw1I/TbrevwDtFpI/AAAAAAAAABM/_bKzI7hTjYM/%7B110E6F67-B3E1-487F-A1B2-0492CDD6CB57%7D.png>
 

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