I used paint shop pro's/jasc's animation shop.. usually animation shop comes with paint shop pro. Hmm, here, lemme make a small turtorial..

1) I took the image and edited the way I wanted it to look inside paint shop pro.


2) It's usually good if you put a bright color (neon green is good) as the background, so you have a better way of judging what you want to be transparent.


3) Copy and paste over to animation shop. Select the paint bucket and highlight that frame (just click on the blue part of the animation). There should be the option "to canvas color" unchecked. check it. now, uncolor all the green parts by clicking on them with the paint can (your image should look like this)


4) go to File -> Save as and then save. This little box is going to pop up, just keep clicking next untill the box goes away. With luck.. your image should now be tranparent.


Good luck!

(if you don't have animation shop, then you can try other free gif animation programs.. but I wouldn't know how to help you)