Try these steps:
1. Open the file in Photoshop.
2. Convert to RGB mode (Image > Mode > RGB).
3. In the Layers palette, double-click on the name of the "Background" image. A dialog box will appear, asking you to rename it. Just click OK.
4. In the Tools palette, select the Magic Wand tool.
5. In the Tool Options bar at the top of the screen, set the tool tolerance to somewhere around 10, and toggle the "Anti-Aliased" and "Contiguous" options OFF.
6. Click on any white area in the image. All of the white areas should be immediately selected.
7. Delete the selection. You should see a faint checkerboard pattern in the deleted areas; this indicates areas that will be transparent in the GIF you're about to create.
8. Save the image for web (File > Save for Web). In the Save dialog box that appears, use the following settings: GIF format; 0 Lossy; Adaptive method; 64 colors; Diffusion dither; 90% dithering. Make sure the "Transparency" checkbox is checked ON, and select a white Matte color. When you're done, click Save and specify a filename and location.
Note that this method will yield a transparent GIF that looks good only against white or very light backgrounds. This is because the original image is anti-aliased to create the appearance of smoothly curved lines; this anti-aliasing creates a fringe that is difficult to remove unless you have the original layered Photoshop file or (preferably) the original vector artwork used to create your source GIF.
If you don't have those original files but need to create a transparent GIF that looks good on a darker background, there IS a process that works -- but it's rather more involved. Let me know if that's the case, and I'll post that process here.
Hope this helps --
Huafi
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by: weedPosted on 2004-05-04 at 16:02:46ID: 10991783
And keep it as a GIF? In Photoshop use Save For Web and choose a color to make transparent in the color table.