Making a photo have transparent background...

I love FCE. I bought this second hand really inexpensive, which means its just plain old 1.0 but I love it so far.
Heres what i want to do...
my sister is in the 101st in iraq, I want to move the 101st logo across any video/photos I have of her. but I can't seem to get rid of the white square background on all the logos. I have photoshop, but am NOT knowledgable at it. I know how to do VERY minimal things with it.
How do you do it?I did go into the help files in PS, and followed the instructions, but it doesn't come in right. Still has the border.
Any ideas/examples/walkthroughs?
Thanks alot,
Jason

thanks for your quick response. My wife just got a great example of how helpful the mac community is.
I was trying almost every kind of file type to save it in even the photoshop format.I was missing the renaming of the layer and the delete part. I thought it was a designation of the background color.
the help files have ten step processes for makng transparencies using selection tools. and it never worked.
Thanks an awful lot, it looks great now.
Jason

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