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Stevo
September 3rd, 2010 @7:37 pm  

Inkscape is a great program that is free. It is a bit confusing at first and is a SVG (scalable vector graphics) program so you can’t play with photos or nothing…GIMP is also free and is a lot like Photoshop…
Photoshop is the other option but as you said you wanted it free and photoshop is far from that…There might be a couple others but they’re the ones I know…Good luck

steve_uk9
September 6th, 2010 @5:10 pm  

transparent backgrounds MUST be saved as a gif or png file , so remember to save as – then change the format to any of the above

Mark G
September 7th, 2010 @10:57 am  

Your right, Windows Paint has no way of defining a transparent background color. However you do have to use a file format that supports transparent colors such as either GIF or PNG.

Check out the free Paint.net editor. Also look at the “How to make a transparent GIF” link.

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