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Making transparent images is simple.
The first thing that you always need to do is open your file.
Next you want to select the magic wand tool ( ) and select everything that you don't want. Like the background. To select more than one area, like the area around the body and the area inbetween the legs, hold down the shift button.

After that go to Layer - Transparency - Add Alpha Channel
Then you want to go to Layer - Transparency - Threshold Alpha and slide the slidder to 255.
Your background should go transparent, like this:

Fianlly select 'save as' from the file menu and choose .GIF for your file extension. Select the first option when the window pops up, and choose export.
Then, select interlaced, and unselect the comment thing.
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