Want to create an oval vignette in photoshop elements 10 with transparent background for printing w

I am fairly new to PSE and I want to create an oval vignette in Photoshop Elements 10 with transparent background for printing on white paper using MS Publisher. Using the white background on inverse selection makes a slight line impression and either it should have a defined "frame" or nothing.
Appreciate any guidance.

Try with the Elliptical marquee tool:
On the tool's option bar set feather 25-40 px (experiment)
Drag out the Ellipse to embrace the object
Go to Layer>new>layer via copy, or CTRL+J
Your selection should fade out as a vignette and be surrounded by transparency
Save this layer via File>save for web, select PNG-24, and tick "Transparency"

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