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1 Open a copy of the image you'll be placing the GIF against.
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2 Click on the "Eyedropper" tool then click on the
textured image. This will set the current foreground color near to the color of the textured image.
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3 Now, make a new image file with same size as my textured image. Set background color to "Foreground
Color"
Let's start placing a text but first, you have to change your foreground color (I used black on this example).
Click on the "Text" tool and click on the new image to bring up the text dialog box. Enter any text (you can use any font/size/style)
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4 Click on the "Eyedropper" tool then right-click
your mouse over the background of the text image.
In my example, you will notice that the background color has changed to "light brown"

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5 Click on Colors>Set Pallete Transparency, (if it ask you that you have to reduce your image to
256 colors, pick Yes).
Decrease Color Depth Settings:
Pallete = Optimized Median Cut
Reduction Color = Nearest Color
Click OK
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6 A "Set Pallete Transparency" window will popup, choose the second option ("Set the transparency value
to the current background color") then click OK

Save your image.
Click here to view an html page with a transparent and a non-transparent GIF.
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