- Step 1-

First be sure that you are completely done creating your image as after the conversion process it will reduce the image to 24 bit color and you will not have all the options available to change things. have you image open and active.

look to the top menu and choose colors then down to set palette transparency.

- Step 2 -

in the pop up window that comes up set your values to what I have . (should be your default)

- Step 3 -

in the 2nd pop up window choose the 3rd option if it is not already the color of the background that you want to be transparent then take your mouse and move it over your picture you should now have an eyedropper click your background or the color you want to be transparent and that color will show up in the 3rd option.

- Step 4 -

last thing to do is go back to the colors tab at the top scroll down to view transparency and your almost done .. now save your picture  BE Sure to SAVE AS a .gif file .jpg are not capable of being transparent