What's the right format to make part of image transparent in LiveType?

Does anyone know what format an image needs to be in to make the white in a logo transparent? Do I have to create an alpha channel in Photoshop or a transparent GIF or something like that? Thanks!

I've never tried it in LiveType but Targa (.tga) files are your best bet. I think PNGs will do it as well (or at least support transparancy)

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    Csound1 wrote:
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