Photoshop - placing transparent gif?

[BobTheCow]

Okay guys I'm JUST figuring out photoshop, and I can't do this one thing and it's REALLY pissing me off. I am modifying a movie poster for we were soldiers, and I need to place a coffee maker onto the we were soldiers pic. But first I had to make the coffee maker have a transparent background, and to save that required saving it either as a .gif or .html (I think). When I try to "place" another pic onto the we were soldiers pic, it won't let me do gifs or htmls.
Basically, how do I get the "optimized" coffe maker successfully onto the we were soldiers pic, allowing the coffee maker to keep its transparent background?

**edit** Also, how do I increase spacing between letters?

**edit ^2** I'm using photoshop 7

[Smegma]

Do you want the coffee maker to have an opaque look or just want it to a surrounding background that is transparent so you can place it over the poster?

[e mag]

if you're using photoshop then just save as a .psp untill its done, then merge all the layers and save as a .jpg.

[BobTheCow]

I am officially a huge moron!!

I realized I could just cut the coffemaker out of its background, and paste it onto the picture.

So here's the finished product (so far)!! Any ideas on how to make the coffe maker not so, well, *blah*??

[chizle97]

Hey Are you a Goon

[BobTheCow]

If by goon you mean what I think you mean... nope.
Sorry, just 16. I just saw the poster and thought it'd be cool to mess with, looked like fairly simple stuff.