Strange transparency with Transient elements


I create a transient element for displaying lot areas selected from a database. When I set transaprency on the element used to create the transient element it still hides everything in the attached references AND elements with transparency in the active file (see image). In the attached image the ligh green area is a lot shape with transparency 90% which makes it light green but it stills hides everything in my reference and part of the transparent red shape in the active file. Active file is 3D. Everyhing on z=0.

Code for creating transient:

Set oElem = CreateShapeElement1(Nothing, points, msdFillModeUseActive)

Set tec1 = Nothing
flags = msdTransientFlagsOverlay + msdTransientFlagsIncludeInPlot
oElem.Transparency = 0.9
Set tec1 = CreateTransientElementContainer1(oElem, flags, msdViewAll, msdDrawingModeNormal)

Any ideas?