In this tutorial we will be combining these images to come up with the third, and final image.
Begin with your images opened up in your program.
Make sure the template window is highlighted and go to selections>>select all
With the template selected go to edit>>copy
Now, you need to make sure that your background color is set to the right color for transparency. This is wrong:
Click on the wrong color and choose this color:
Once you have the right color as your background color it should look like this:
Now, highlight the image you're going to put the template over, and go to edit>>paste>>as transparent selection
Once the template is pasted on, move it so it's in the right spot for you.
Now, select the template along with the picture which has now been placed into the template.
Edit>>Copy and then Edit>>Paste>>as new image
Now you've got your icon! Here's how I do transparency. Select the magic wand tool and click on the white area of the template.
Go to selections>>modify>>select similar.
Now we have all of the white that we want transparent highlighted.. Now go to selections>>invert and then copy and paste as a new image
There is your transparent icon using a template! GREAT JOB!