PSP : MAKING IMAGES TRANSPARENT (TUT 1)
Paint Shop Pro Image Tutorials | Submited Feb 29, 2008
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There are a several ways to make images transparent. These tutorials have been written using PSP Photo X2 (and should be easily adapted for earlier versions from PSP 8 upwards).
Tut No. 1 - using a black/white image

(always remember to take a copy of your original image and work on the copy).
1. Choose the
MAGIC WAND 
tool.
2. Wand settings entirely up to you (and is usually trial and error), for this tutorial I will use these settings.
3. Click anywhere on the white background - this should now be completely selected and you should see moving lines surrounding the image. Now we need to invert the selection so that the butterfly is selected you do that by either using the keyboard
Ctrl-Shift-I OR

.
Your image should now look like this. Example:
4. Take a copy - using the keyboard go -
Ctrl-C OR
5. Paste as a new image - using the keyboard go -
Ctrl-Shift-V OR

).
You should now have the butterfly on a transparent background.
Finally, to keep the clarity/quality of the image, save as a PNG.
6.
File > Export > PNG Optimizer
7. A screen will open with the
Colors tab showing. Make sure that
16.7 million colors is checked, if not do so now.
8. Now click on the
Transparency tab and choose the settings as shown here and then click
OK
You will then see a screen that looks like this
Choose where you want the image to be saved and give it a file name and make sure it is set on
PNG for the file type and then hit save.
You now have a transparent image with no lowering in resolution and no white background.
NOTE: You can only save transparent images as a PNG file. You
cannot save animated transparent images as a PNG, these must be saved with a GIF file extension.
Here is my final image.