Well, I tried it, and I got it to work
Here is my Maya 4.5 scene file complete with my 512x512 test image
Basicly, I did what I talked about above, by creating a layered shader with a blinn containg the transparency on the bottom, and plopped the refraction shader on top of it.
The blinn also has the image in the color slot as a PROJECTION.
I had to adjust the projection for it to fit
Here is my final render:
Israel "Izzy" Long
Motion and Title Design for Broadcast-Film-DS