VS 2008 transparent panel to catch mouse events

i have a panel on a form that allows me to view any window under the form.




The problem i cannot sort out is at the moment i am able to select items under the transparent panel, how can i change this so i can only view items under the form and not actually select them?

I am also wanting to capture the mosue events in the panel.

Forms property:
ForeColor = ButtonFace
TransparentKey = ButtonFace
TopMost = true
Rest are default

Panels properties:
BackColor = Transparent
Rest are default