Background not transparent!

I'm a newbie using Photoshop 6, and apologize if this has already been addressed in the Forum. I've read so many so far, I think my eyes are ready to bleed.
Anyway, I've extracted part of an image using both the magic extractor and also cleaned up a bit more with the eraser and saved it as a PSD file. The problem is, when I copy & try to paste it onto another image file, the background of my original shot is visible (and appears white). I have a checkboard background on my extracted file, which I believe means it's supposed to be transparent; however it's not. What am I doing wrong?!!

You need to save the image in a format that supports transparency (GIF, for example). Use 'Save As' and select GIF in the drop down menu.
Bob Warren

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