I'm puzzled. In PS3 I created a PNG for my site, removed background, so only has one rasterized text layer. I even compressed the image (removed unnecessary colors) in a .png format using the Export Web Graphic option.

Page shows up fine on Safari (Mac)
On iPhone, the transparency is not happening and is basically a funky light grey.

Any clue? I would rather not list the site yet, because it is a personal website, and I think hackint0sh gets Google crawled pretty often. If you would like to help me out, can you post or pm me for a link. Sorry for the hoop jumping, hopefully someone can still help me out.

"...I even compressed the image (removed unnecessary colors) in a .png format using the Export Web Graphic option..."

Did you make sure you use PNG24 preset in that same dialog box?