When you're using ka-map layers, there are three places where you specify whether you want GIF, a PNG, or a JPEG image tiles: in the mapfile, in kamap\config.php, and with the i option in the layer constructor.
The IMAGETYPE setting in the mapfile seems to be ignored.
The 'format' option in the $aszMapFiles array of config.php also seems at first glance to be ignored, because if you set 'i': 'gif' in the OpenLayers.Layer.KaMap constructor, it's GIF files you get.
Except - if the image type is PNG in config.php, and GIF in the layer constructor, and the layer is not a base layer, the GIF is created with a white background color, instead of a transparent background color.
If the two image types match, the tiles are created with transparent backgrounds. If they don't, they are not.