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Help! making backgrounds transparent.

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:? I tried to follow some instructions in tutorials but am having trouble. I can erase the background in a pic with the magic wand but it stays either white or black. I can't seem to get it transparent ? My Epson CD print software can't see GIF files? I am new to this and don't understand the layers thing?

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Thanks for the reply!

I used this tutorial to do the job but its not really transparent. What was the background comes out white. If I use the photo on color, It has this big white square behind the photo. Maybe what I need to do is Crop out the background? I can't figure out how to crop out the background either.

Thanks, Jeff

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