How do I achieve this effect (Fireworks)?

Hey guys!
I'm brand new to the forum and a very "green" web designer. I'm hoping that someone wouldn't mind sharing their expertise with a newbie such as myself with what I fear is a very easy problem, haha.
In the following link there is a graphic in the upper-left corner that reads "Gateway Studios." The word "Gateway" is transparent so that it shows through the orange block and allows the background to come through:
http://themeforest.net/item/gateway-studios-for-wordpress/full_screen_preview/82145
I am interested in recreating this effect. What sort of process(es) would I need to perform to duplicate this outcome? The images is saved as a .png, so I'm wondering if I need to use Fireworks. I have CS4 and am eager to apply this effect to some of my graphics.
I know that there is likely an extremely easy solution to remedy this problem, however, as I stated before I am very new to all this. Any response would be greatly appreciated!

First off, thank you both for your quick responses! I really appreciate the help from people who are way more knowledgeable than I am and can take the time to work with those in need of assistance (which I most certainly am, haha).
Marian, I actually already know how to make the canvas transparent and perhaps this is something I should have been more clear about in the OP. What I am actually going for is the effect where the word "Gateway" is allowing the background to show through the orange layer so that it looks like a cut-out...does this make sense? I know I'm probably not using the correct terminology, but it's the best way I know how to explain it.
I did go through some of the threads in the Fireworks forum but didn't find anything particularly useful.
I read the article you suggested as well and found it to be very helpful! I look forward to applying that technique once I get this image squared away! I just really want to get that cut-out effect going!

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