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This isn't really a bug, but I was just wondering if it's at all possible to squirt a transparent gif? I just want text - and not the background color of the comp. I can't find any info on this.

It is possible. The old version of GIFsquid (still available here) uses PNG internally instead of AVI, and will produce transparent GIFs. It can be a little trickier to set up, so I scrapped that in favor of simplicity but I still have the old version available.