God's Word is Faithful and True
Would like to give credit for info below but don't know where I got this.
Making gif Transparencys with Paint shop pro 5
If you are starting a new GIF image, go to File/New, select "256 colors (8 bit)", and a background color which will stand out from the rest of your image. Click the "eyedropper" tool, and right-click on the blank image. Then go to Colors/Set Palette Transparency, and select "Set the transparency value to the current background color" and click "OK". To see the transparency, go to Colors/View Palette Transparency. If you are starting a new PNG or TIFF image, go to File/New, select "16.7 million colors (24 bit)" or "Grayscale (8-bit)", and select "Transparent Background" in the background color selector. Before you save, go to Masks/New/From Image, select "source opacity", and uncheck "invert mask data". After you've saved your image, go to Masks/Save to Alpha Channel. This will attach the transparency information to the image file. If you are starting with an existing non-transparent image, and want to make a transparent GIF, first, reduce the color depth to 256 colors (Colors/Decrease Color Depth/256 Colors using your preferred options), select the area you want to keep as part of the image using the lasso tool, then go to Selections/Invert Selection, then use the Flood Fill tool to fill the background with a solid color which does not occur elsewhere in your image. Using the eyedropper, right-click on the new solid-color fill, then go to Colors/Set Palette Transparency, and select "Set the transparency value to the current background color" and click "OK". To see the transparency, go to Colors/View Palette Transparency.