Every time I try to save my image as a png or jpeg my drop-shadows/highlights are coming out as solid white instead of being blended with the image/back ground. I tried googling but couldn't find a cause and importantly a fix. Fairly new to photoshop and basically learning as I go. Photoshop is pretty challenging and have solved past problems myself BUT.... this one has me banging my head on the wall...lol.. I want to save the image (android widget image) as a png without the dark background (to accomplish that I tried to save it against a transparent background but I always get that pure white shadow/highlight instead of the blended effect I want in the second image). Merging layers that make up this image I always get that pure white effect. Flatting the image same thing.... I'd appreciate a possible cause and most important a fix... Thanks in advance....

