how to make jersey preview background transparent

I've tried making previews with a transparent background using Paint Shop Pro 8 but they always end up with a white background in the game and even when I open the file again (all I did was save it as a .png) they have a white background.
Does anyone know what the problem is? Am I doing something wrong?

Maybe, try with Adobe Photoshop if you have it....
Or save the file as DDS, that works to me

thanx i'll give the dds a try, and if it doesn't work than i'll get photoshop (i had it but got rid of it)