Layer opacity in illustrator cs3?

[mashinhead]

I have a layer that is of an image, can i adjust the opacity a la photoshop? I'm drawing over it and would like to to this

 

[Belly-laughs]

Select image, locate transparency palette, insert opacity value.

 

[zarathustra]

To change the opacity of the WHOLE layer, click on the circle by the layer's name, and then adjust the opacity. Any image, art you place on the layer will inherit the opacity (or any effects as well).