PSE11 and Win8 and I can't make erasures transparent

Never had this trouble with PSE10. But even though I unlock transparency my erasures still come out with the background color. What am I missing here?

Yes, I did that. Here's a screenshot showing the image with the erasures in PSE11 and the resulting jpeg in PowerPoint with the erasures not transparent, but white. Any ideas what I'm doing wrong? Used to be able to do this in PSE9 before I upgraded.

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