The Windows 7 taskbar has many feature which we have discussed previously. But one feature probably missing is the ability to make it transparent to display the wallpaper in full. FadeTaskbar is a freeware and portable tool for Windows which allows you to make the taskbar transparent. It lets you make the taskbar more transparent so you can see right through it, yet faintly see the open application tabs. Hovering over the taskbar brings it to full opacity immediately.
You can set the transparency level from the system tray options. There are five levels of transparency available for the app.