I tried out Stig's fantastic emailbg.net tool — thanks for making it Stig, it's excellent! I love it.
I did find a small bug with it, but I'd classify it as non-critical.
The problem happens when you apply the background image to a single table cell with a fixed width and then select "fit to content" for the height.
Outlook 2007/10/13 (all the bad ones) create a mystery gap at the bottom of the cell with the background image. 2003/2002/2000 do not.
This image below shows what happens.
I tried a cell with ONLY text (no gap), with a million nested tables (gap) and then I tried with a single nested table (gap).
This doesn't need debugging but is here more as an FYI / to put it out there.
I had a bit of background image poking out the bottom of my footer, but I eventually had to fix the issue by rejigging some things and rearranging the structure of my tables.
Thanks for posting this info - that's very helpful - and thanks for your kind words about emailbg.net as well! I should definitely look at documenting some of these quirks and glitches that can happen with the background image VML.
I know Brian Thies has had a discussion with Microsoft support about the issue with tables inside VML elements, and from what I've found so far, the workarounds have to be tailored to each individual design. It's possible in most cases, but not always easy.
Nice job fixing this problem in your template, and if you have any example code to share here, that would be great.
Ahaaa, that Microsoft article is interesting! And relevant. Thanks for that! That is obviously what's happening.
Unfortunately I didn't fix the space appearing, I just amended my layout so that it wasn't such a problem.
If I figure anything else out I will let you know.