transparent window problem

Hi – I am interested in developing an application, where there is a transparent window on top of another normal window. The transparent window should be, like a typical transparent window, look through. But any thing that I draw on top this transparent window should appear as if it is right above the normal window. (as if a glass pane is hanging in the air, without being seen but it is there and things drawn on it are visible). The window messages should not go through this transparent window to the window below it. Tried using Layered Windows, with WS_EX_TRANSPARENT or WS_EX_LAYERED flags,but window msgs go through it to the window beneath. Tried Form.opacity, form. Transparency etc. but those make even the drawings on the transparent as invisible. I am guessing Subclassing the windproc should do the trick. Any ideas or extra snippets to do this ? Thanks,