You have an image, but you need the background to become transparent. Tricky - until now...
I used Pixlr for this - a lovely, free, online version of Photoshop. There's a guide to how to do this in Photoshop at Media College which is where I'm basing this on.
- Create a new layer - use the layer box on the right
- Unlock the base layer by double clicking the padlock
- Select the new layer and move it down to become the base
- Select the original layer again
- Use the magic wand tool to select the background
- Hit delete
When you save the image it HAS to be saved as a PNG - JPG doesn't support transparency.
Jim says you can do this in Paintshop Pro as well.