Transparent GIF
Using Adobe Photoshop 5.5
Before

After
1) Open Image
Go to File and Open. Find your image and select open.
   
2) Image, Mode, RGB
Go to image, go down to mode, and then down to RGB Color
   
3) Make Background a Layer
Double click on the Background layer and rename it to Layer 0. If the layers palette is not showing go to Windows , Show Layers.
   
4) Magic Wand
Select the magic wand and select the white area and hit delete

 
   


5) Save for Web
Select File and Save For Web
   
6) Select Transparency
A) Click on the arrow and select GIF 32 Dithered
B) Check the Transparency box
C) Select OK