Mike - in Paintshop Pro the image continues to have a white background when viewed in PSP, but when you paste it into a web page or document, the transparency then works. In PSP there is a "Proof" button to show what it will look like in your document. I don't have Photoshop so I can't help otherwise. Also note that jpgs won't show transparency only gifs (or pngs as you've discovered). Peter.