I am using a tiff as the file type, PNG and jpegs don't allow you to save Alpha channels when you render . I did figure out a solution. My image was using the realistic sky and Skylite rendering option to light my scene. What I found is if you disable the realistic sky and put an image in the Background portion of the Scene effects tab of the properties tray and use this to light the scene instead of the realistic sky the fringe disappears. Thanks