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[pmkprog]

Use the magic wand selection tool in Photoshop. Set the tolerance low enough so that it will only select the white area.

Then change into quick mask mode once that selection is made.

From there grab the paint bucket and fill all of the area outside where the white line is. Fill it with the same color as the line is in the mask.

Change back to normal view (out of quick mask).

If the area around the outer edge is currently selected, inverse the selection to have just your object selected. Copy it and paste it into a new layer.

Remove your bottom layer.

Save this as an image with "_web" in the title and keep it as a PSD.

Change it to RGB and make sure that the over all size is about where you'd like it to be for size on the page (measure in pixels).

Then save it for web out of Photoshop as a GIF or PNG and it should maintain the transparent area from Photoshop. You might have to monkey around with those settings to get the best fit for the web page.