Okay, I've googled, searched the forums, and I'm still pulling my hair out.
These are the steps I'm using in order, and for some reason I still get a white background after I save. There's gotta be something I'm missing that is a "DUH" thing... but I don't know and my boss isn't around to do it for me (also it'll be nice to know for future reference, say when I DO get a license of CS1 or 2 on my work computer)
- I open the image and select all, and hit copy (to pave the way for the next step)
- I create a new image through File > New, then set the contents to transparent
- I create a new layer through Layer > New and then drag it underneath the image with the Layer window
- I use the magic wand tool to select the areas of white and hit delete to erase, I added a drop shadow with the f(x) button at the bottom of the Layer window
those are the steps I took, now I think the problem is when I try to save, there's something I'm doing wrong, because if I try to Save As and select PNG, there's a layer issue because there are multiple layers (and I end up only being able to save as a copy, and I still get my white background back), so I tried to flatten the image, and I get that white background back.
I've gotta be missing something, but I don't know WHAT, and it's pretty important that I get this image with a transparent background, otherwise the white overlays a yellow background thus making the webpage ugly.