||We found a workaround for making transparent text. This works if you don't need to do alot of text, or just create a watermark effect. First create your text in a graphics program with your text black, and your background white. The arial type fonts look the best. Save the file out as a tiff. Load the tiff into ArcMap, and turn on the Georeferencing toolbar. On that toolbar make sure the target layer is the tiff you just loaded, zoom to the area you want the text, and click on Georeferencing...Fit to Display. You can rotate or use the nudge tool from there to move it more into place. Zoom in or out to change the size of the text relative to the map, and just use the fit to Display command to resize it. Once you are done click Georeferencing..Update Georeferencing. No that it is a raster layer you can make it transparent and set No Data to Black and Background Value 255 to White. It works pretty good and the text is crisp. Basically you create a raster layer georefrenced.