You can take out the background of an image saved in .GIF format. This is a good option when you want to blend an object into your Web page background - but it only works with .GIF pictures.
To give an image a transparent background:
1) Select the .GIF picture by clicking on it. Note: You cannot make JPEG quality pictures into transparent images.
2) Click the Set Transparent Color button on the Image toolbar. The cursor will turn into a pencil icon.