I did what was in tutorial with channels from below.
I copy here what I did so someone can help me understand whats wrong and where I ran into problems this is from transparency faq. Posting it here because I didn't think anyone see.
This is getting embarrassing, I have went over and over different areas of channels,etc and I still can't get right but now I have black background.
I am using Adobe Photoshop CS version 8.0, no I can't upgrade to 3 but I do have also PSP 9 and Photoshop 6.
****areas is questions and where I am stumped******
u]Adobe Photoshop – Method 1[/u]
As mentioned above, this is my preferred method for new users to learn with.
- On the Layers Palette turn off all layers except for the layer that has your bikini on it. (To turn a layer off, click the eyeball symbol to the left of its name.)
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didn't understand how to turn of layers. I didn't get why I didn't have layers except channel areas showing now I get that part but would it mess up the alpha?
******* - If the bikini layer has any white space around the bikini itself, use the eraser to get rid of the white space. It's very important at this stage that the bikini be on its own layer with nothing else on it.
*****didn't see this I thought I was suppose to paint the background Black GRRR! but I had no white in texture.
**** - On the Layers Palette, ctrl-click the thumbnail for the layer with the bikini on it. (The thumbnail is the little picture of the layer directly to the left of the layer's name.) This will select everything on the layer. You should see the "marching ants" outlining your bikini now. If there are elements of the bikini on any other layers, hold down shift, and then ctrl-click their respective thumbnails to add them to the selection. Make sure not to include the background or any of the template layers.
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I totally didn't get this part ants I couldn't seem to march all way around. Possibly forgot ctrl click? What in heck does ctrl click do?
******* - On the Layers Palette, click the tab that says Channels to switch it to the Channels Palette. What you should see listed here are the three primary channels for your image, labeled, "Red", "Green", & "Blue", and a master channel for the three, labeled "RGB". If you see any other channels besides those four, delte them now.
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I totally didn't get this part, did forum hide this but I had no other layers so I got this right word layers pallete for some reason really stumped me Is this any different section like main image, red, green and blue?
****** - In the lower right corner of the Palette Window, locate the button that looks like a square sticker being peeled from its backing. It's the second one from the right. It's immediately to the left of the one that looks like a trash can. It says "New Channel" when you hover your mouse over it. Click it.
*****Now its say Pallete window is that the same I am looking at in layers channel?
Did create new channel, it said Alpha
***** - You should now see a new channel called "Alpha 1", which is currently all black. Make sure all channels except for Alpha 1 are turned off and that Alpha 1 is turned on. This should have happened automatically when you created Alpha 1, but if it didn't, do it now.
- Your canvas should now appear to be solid black with the exception that you should still be able to see the "marching ants" outline of your bikini. Paint everything inside the outline white and leave everything outside of it black.
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I got this right finally or thought I did
***** - Click "Select" on the menu bar at the top of the screen to pull down the Select Menu. Click "Deselect" and you should see the marching ants disappear.
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I found it did it, one thing I got right
***** - On the Channels Palette, turn the red, green, & blue channels back on, and turn Alpha 1 off. Now click the tab that says layers to switch back to the Layers Palette. Create a new layer by pressing the same button you previously used to create the new channel. (Just as it created a new channel while you were on the Channels Palette, it will create a new layer while you're on the Layers Palette.) Click on the name of this new layer and drag it underneath the layer with the bikini on it. Paint the new layer 50% gray or darker; black is fine. (The gray/black layer will prevent the white halo sometimes caused when Alphas are created the way we just did it. If you don't know what I mean by that, don't worry about. Just make sure to always put a gray/black layer underneath your work and you'll never have to see that white halo. Alternatively, more advanced users may wish to use one of the better halo-elimination methods discussed in the FAQ.)
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I totally didn't understand this area. I didn't know what the person wanted
thought how am I going to drag this layer behind flowers just didn't get it all.
I am sitting there in front of program thing how am I going to put a layer behind this one when there is no layers I can drag. So I thought I have cut layer 3 and paint it some how
but it wouldn't let me drag under it.
****** - Save your file as a 32-bit TGA and upload it to SL.
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I did this but image was now uploaded just black not transparent when I uploaded into
SL.
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I am really frusterated none of my inworld friends can help they use Gimp.
Flower image is mousepainted image I was trying to work on.
Image below is inworld.

surrounding your name. This indicates that all the pixels that make up your name have been selected.