Rotating Transparent Image Issue!

[P.S.]

I'm having quite the issue here..

I have imported a transparent gif into my simple 2 frame sample movie. The image shows up transparent fine.

The issue is, when I go to animate the picture and simply rotate it 90 degrees....it doesn't really behave how you'd expect it to.

Basically, the image rotates itself, but it also becomes garbled in the animation process and duplicates itself during the transition....

Any help would be GREATLY appreciated.

I attached my simple 2 frame fun movie.

Thanks again.