No, I'm saying use AlphaBlend in chuncks, not pixel by pixel.
StretchBlt(hMemDC, 0, 0, width, height, hDCSrc, 0, height - 1, width, -height, SRCCOPY);
for(int i=0; i<levels; i++)
AlphaBlend(hDCDest, left, top + height + i * Size, width, size, hMemDC, 0, i * Size, width, size, fcn, 0);