This works. View the body statement in the source.

No intent to be fancy here.

The transparent color is that of the letters T, H, I, and S.

      This quick and dirty example gif is saved with a transparent letters and it does tile and lets the background color through. For the life of me I can't think of a "how did he do that?" to do with it. It would obviously be a timesaver to us a single logo against a varying background.

Try here for another