Cycle plugin works but IE is killing me with a white box!!!

Cycle plugin works but IE is killing me with a white box!!!

www.nerkin.com

This is my testing site. I'm rotating out 4 Top Featured stories with associated images at the top. This is driven by the Malsup Cycle plugin for jQuery (http://malsup.com/jquery/cycle/) and it is actually working 97%. I have some key issues though and cannot seem to get a solution that will work:

1. The rotator module functions great in FF but in IE 8 a white background fills the container and I can't get it to go away. I have tried the cleartype: false trick and cleartypeNoBg trick too and it's still not working.

The only thing the cleartype trick does is shut the white box off and that would work - except that the subtle drop shadow on each of the 4 rotating PNG files then turns to an ugly fat black border and the transparency is gone. I know this has something to do with how IE 8 is swapping out the PNG's and that's where the issue is but I can't seem to fix that either. I've even installed the Unit PNG fix (http://labs.unitinteractive.com/unitpngfix.php) and nothing seems to help. I have no experience with IE8 filters and what not. I don't know how to fix filters!?

2. The second issue is that in IE8 when the fade occurs from one transition to the next, there is still a brief moment where the paragraph title & excerpt text "shifts or jumps" slightly when the fade cycle initiates. It just looks unprofessional & crappy.

3. The third issue is that I cannot figure out how to make the round blue buttons show a series of numbers like 1,2,3,4 to tell the user they can be clicked on as a sequence. Right now they are just blue buttons without numbers, although when you click each button they do jump the rotation cycle to the appropriate slide - so it does work functionally, but it's not exactly user-friendly. It should be smooth and easy, much like this: http://www.whitehouse.gov/ ....I wanted there to be little buttons with numbers in each below the READ MORE button so a user could jump from article to article without having to wait for the entire cycle to occur.

Development site: http://www.nerkin.com/

If anyone can help me figure these final tweaks out I would be super stoked. Here is code:
----------------------------------------------------------------------
JQuery CODE STARTS:
<script type="text/javascript">
$(function() {
    var bc = $('#buttonContainer');

    var $container = $('#container').cycle({
        fx: 'fade',
        speed: 2800,
        timeout: 1,
        pause: 1,
        cleartype: 1
    });
       

    $container.children().each(function(i) {
        $('<input type="image" src="http://nerkin.com/sys/templates/site/img/rotator-dot.png" value="'+(i+1)+'" />')
            .appendTo(bc).click(function() {
                $container.cycle(i);
                return false;
            });
    });


});
</script>


<!--[if lt IE 7]>
<script src="http://www.nerkin.com/js/unitpngfix.js" type="text/javascript"></script>
<![endif]-->
</head>
----------------------------------------------------------------------------------------------------------------------
JQuery CODE STOPS


More....


MARKUP CODE STARTS
----------------------------------------------------------------------------------------------------------------------
<!-- Rotator module starts. -->
                <div id="rotator">
                    <div id="container">
                            {exp:weblog:entries weblog="rotator_articles" limit="4"}
                            <div>
                                    <div id="temp" class="grid_6">
                                    <h1>{title}</h1>{rotator-excerpt}<br />
                                    <a href="{title_permalink="rotator_articles/view"}"><img src="http://nerkin.com/sys/templates/site/img/read-more-button.png" class="more" width="114" height="32" alt="Read More link" /></a>
                                    </div>
                                   
                                    <div class="grid_10">
                                    <a href="{title_permalink="rotator_articles/view"}"><img src="{rotator-graphic}" width="580" height="316" class="unitPng" /></a>
                                    </div>
                            </div>
                            {/exp:weblog:entries}
                    </div>
                            <div id="buttonContainer"></div>
                </div>
                <!-- Rotator module stops. -->
----------------------------------------------------------------------------------------------------------------------
MARKUP CODE STOPS

Has anyone successfully built something like this?!! I've been beating my head into objects trying to figure this out!!!!