Making a simple name Tatoo with Adobe Photoshop CS3

Can anyone help me with making a tatoo with this software using the upper body template from sl? I have read the tutorials and have tried several times making but its not coming transparent. If someone could im me in game and go with me step by step.. i can follow pretty quickily.. or post a more detailed instruction or a link to one I'd really appreciate it

I have a video tutorial on google videos that shows how to do it in Photoshop 7.

http://video.google.com/videoplay?docid=6816972867985592215&hl=en

use the google video player so you can read the text. in this tutorial i go in depth on how to make a tattoo in photoshop and i also show how to fit the tattoo in the end.