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This fixes 2 major bugs, and reduces the code by 100 lines. It also fixes a minor bug.
Bug 1: When Mixing is enabled, but one of the layers is transparent, the transparent layer would still be visible. This is now fixed.
You can validate this by checking "Why CD-i". The menu used to be tinged green, and often had ghost images. Now the ghost images are gone, and the menu correctly shows that the green overlay is only supposed to appear as a highlight on the menu button.
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Bug 2: When mixing is enabled and both layers are transparent, previously no background was visible. This is now fixed.
You can validate this by checking the Validation Disc (Europe). The Background test used to appear fully black. Now you can see there is actually a color test on the background layer.
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Bug 3 (minor): there was an edge case in the Matte registers. If the game is programmed such that the matte registers are not monotonically increasing in order, they could execute out of order.
I can't remember if any games have this issue. But regardless it's fixed.