I'm not sure what Elements is. I used PS 7 and do

I would do a search for alpha layers or transparent layers in the help file or find a tutorial to answer those questions. There are lots...

of tutorials for making clothes. Some on the SL website or try searching in google

what i bout was PS Elements 7... i think its just same thing...

bought

what I do is create a new image that's RGB Color and transparent then create a new layer to do the clothing image on, save it as a png

thats simplified, you'd get a lot more info checking out tutorials

you'll need the body shape templates unless you just wanna wing it, can get those on the SL website or do a search for em

thank you

I have done so with Elements 3. There's info on the SL Forums, Graphics section, one of the stickies about transparency.

I can't remember the exact details, it's not documented officially I think, a key sequence which saves the selection as an alpha channel?

(that was to create a TGA. A PNG might work more simply, like Ivey said)