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I'm often asked how I create those neat looking home page graphics with the drop shadow text

Transparent gif against a light gray as it was designed for

A transparent GIF against the color and picture
it was designed to be seen against

This is useful for making a graphic with your site name that has to sit on a textured or colored page background.
Create a canvas (empty background) that is the same color as the web page.
Create your desired text and save before flattening
Take your flattened image (text on page colored background): Image>Mode>Indexed Color - converting it to Index Color.
Image>Mode>Color Table - and use the eyedropper to pick the color to be transparent.
Make sure the transparency box is checked.
File>Save for the Web - and pick GIF and check the transparency box.
The "Save for the Web" will generate a transparent GIF with the proper background edge (because you created the text on it to begin with).
If you're still seeing an edge use the Matte option to choose a background color that you are using on the web page.
To create the drop shadow and glow that I've used on the above example
Double click on the text layer and the layer properties box will appear
Check the effects you want
Double click on the effect name to modify the effects
Experiment, that's how I learned

Transparent gif against a light gray as it was designed for

Transparent gif against a light gray as it was designed for

It's critical that you create your transparent Gif against the background color it will be used on (see above picture) or else you will get an unwanted abrupt transition like this on the white background This is the same picture as the one above.

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